FRIDAY 5/23/14; New Home Sales

The dollar/yen leaps higher from the 100.83 low up to 101.95 over the last day gaining one full point. The weaker yen fuels the Japan and US stock markets higher. NIKK +0.9% near 14.5K. Australia, China and South Korea stocks are all higher. China property stocks jump +2% to +4% higher, keeping the real estate bubble alive, as housing purchase restrictions are eased. The Indian Rupee continues to strengthen to 58.45 printing an 11-month high at 58.36. Copper moves strongly higher up +0.8% to 3.17 encouraging market bulls.

The Thailand unrest continues with the military now in full control .......





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TRAN prints a new all-time closing and intraday high at 7987 and 7995, respectively, so the Dow needs to keep moving higher to print new all-time highs above 16720 to verify the continuing rally from a Dow Theory perspective. Semiconductors, SOX, gain +1%. HPQ is an outperformer today up +6.1%. ARUN loses -11%.

For the week, the SPX gains +1.2%, the INDU is up +0.7%, COMPQ gains +2.3% and RUT +2.1%. Tech and small caps lead higher this week but note that tech outperforms small caps. The tech and semiconductor stocks did a lot of the heavy lifting this week. The weekly volume is the lowest of the entire year thus far. Financials are instrumental in creating the market upside this week. XLF +1.4%. Regional banks feel lots of love and create broad market upside. KRE +2.3%. The banks gaining in the back half of the week greatly helped the market bulls. AAPL gains +2.8% this week leading the Nasdaq higher.

American consumers are in shock over the high beef prices as they plan the weekend barbeque so many opt for chicken instead. The pre-holiday stock market bullishness played out yesterday and today. Markets are closed until Tuesday. WTIC oil is 104.35 and Brent crude oil is 110.44 ahead of the Ukraine elections. The 10-year yield is 2.54%. Gold 1292. Copper gains +0.8% to 3.17. Studies on the oil shale energy boom in the US are showing that the potential oil reserves may be vastly overestimated. The road to US energy independence may become more difficult.