In was an historic week for market watchers as we watched Alibaba trade publicly for the first time. It was also a great time for the capital formation process as the market successfully digested almost 220 Billion of new market cap.
On your left is a graphic of all companies with Market Cap over 100 B. If you add them up, it comes to about 2.8 T or 2,867 B. With BABA's market cap of 220 B, it comes somewhere between FB and GOOG in terms of capitalization. That represents an almost 7% increase in market cap that had to be absorbed.
All in all, it was a great week as follows:
- The BABA IPO worked as expected with no technical glitches
- SPY was able to make a new all-time closing high on Thursday before giving some back on Friday.
- US Fed came out and said they are going to keep rates low for a long, long time and that they can make up any new reasons they want for keeping rates low - in other words they don't have a fixed formula for when they would raise rates.
- The fact that China's largest Internet company (who could presumably list on any stock exchange they wanted) came to the New York Stock Exchange and the US markets to list their shares is a tremendous vote of confidence for the US financial system.
All this said, the US Dollar is rallying strongly against most other currencies. The US Economy seems to be rolling along, and the rest of globe wants to come along for the ride.
Have a great week ahead.
To watch the live trading of Experts, I think www.fattail.tv is the best. They have good track records. Anyone can try it to learn and it's free.
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