US Equities got hit hard, down -2.5% on average, as the tariff war with China escalated. It sent stocks into a nasty retreat on a global basis. China got hit the hardest down -6.55%. In fact, there was not a …
Equities markets put in a respectable week as Fridays action turned things around from what was looking like a key reversal pattern. IWM was up almost +2% on Friday and +1.4 % on the week. The catalyst was the jobs …
This week we learned that Q1 GDP rose more than expected (3.2% vs. 2.5% estimates.)
But that’s just the headline.
More importantly, there is the rest of the story.
If you look “under the hood” you’ll find 3 bears.
The long-expected Mueller report (redacted) was finally released and the market hardly reacted. Meanwhile, most major US market indexes continued to march forward with the NASDQ 100 leading, up 1.28% over the last 5 trading days. One ominous sign is …
US and Global Equities continued to rally, with the NASDQ 100 +.63% for the week. It is just a hair from making new all-time highs, as shown on the chart above
This rally off the Late December lows is a …
Global Equites melted up, gaining over 2.5% on average this week led by Emerging Markets. Norway’s highly respected $ 1 trillion-dollar sovereign wealth fund is dumping Emerging Market bonds and moving into Emerging Market equities. This should be considered a …
Look at the table above.
The 6 month returns the picture is not pretty.
The sectors that had positive returns are safety plays
One the other hand, the last three months paint an opposite story.
Will the short-term strength persist …
Risk Gauges flipped 100% negative (see risk gauges below) as Global Equities closed on their lows for the week.
Member of our Alpha Rotation service have seen the progression of the market’s deterioration in the risk gauges shown below (read …
U.S. Equity markets reversed their relentless climb up this year and dropped between -2 to -4% for the week.
Risk Gauges flipped 100% negative by the end of the week, despite the rally into the close on Friday.
So, I’m …
Last week’s “Risk On” mood was most clearly demonstrated by the chart above which shows that despite the jump in rates, high yield debt, (Junk) out-performed the TLT in both the short and longer-term measures.
Not surprising, all four key …
