This week….. - Once again the US #stock markets jumped to new all-time highs (nominal). But not everyone joined the party. A divergence? Perhaps but one week is not conclusive. September is coming and it is the cruelest month. The background of a world awash in debt and #geopolitical concerns could trip the markets up. - #Bonds slipped this past week after hitting to the top of bull channels. Still the bond rally remains intact and higher prices might still be at hand. #FOMC minutes and Janet #Yellen in Jackson Hole, Wyoming suggested interest rate hikes might occur sometime in the latter part of 2015. That seemed to steady the bond market as the yield curve flattened with some short rates rising faster than longer rates. - #Gold and #silver fell this past week. But #copper rose and that is a possible positive divergence. There was another large dump of gold futures this past week on August 21. This time the dump occurred at around 2 AM. There have been a number recently. Is this a process to soften the market up for a larger dump as was seen in April 2013? A large symmetrical triangle has formed in gold. Symmetrical triangles can break either way. Right now the breakdown is closer. But September brings positive seasonals. - The #US$ Index jumped to new highs this past week closing over 82. The Euro broke down against the backdrop of geopolitical woes in Ukraine and signs that the Euro zone is sliding into recession. The #Euro zone stock markets have been particularly weak. The US$ was up against every major currency this past week. - #Oil prices broke down this past week but a descending wedge (bullish) appears to be forming. The energy stocks were up on the week. Energy stocks remain cheap in relation to oil despite their recent outperforming oil prices.
Posted on: Mon, 25 Aug 2014 12:03:26 +0000
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