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Good morning and thank you for reading this week’s Monday Morning Market Commentary. This past week we had the markets overshadowed by all the sad and scary events from the Boston Marathon bombing. My thoughts and prayers have been going out to the friends and families of everyone affected by this horrific event.
As for the markets, we had stocks take back all the gains they had in the previous week and bond yields drop back to a major resistance of 1.7%. As for economic reports, we had a ton of disappointing reports, as well as some pretty lousy earnings reports. I’ll talk about the disappointing earnings reports and some technical signals we’ve received confirmation of this past week. Continue reading
Tag Archives: RSI
All-Time New Highs For S&P 500… Will The Goods Time Continue?
Good morning and thank you for reading to this week’s Monday Morning Market Commentary. This past week we finally saw the S&P 500 close at all-time highs. It just so happen to come on the very last day of the week, month, and quarter, which was Friday. We did continue to see bond yields drop, even though stocks rose across the board, at least here in the U.S.
Let’s first look at the chart of the S&P 500 from last week. Stocks did start the week off quite rocky, with a big drop on Monday before it started it’s rise. The S&P 500 ended Friday at 1,569.19, an all-time high close for the index.
Bonds continued to diverge from stocks and we saw the 10-yr Treasury yield drop again. This divergence from stocks has been going on for a few weeks now and as I talked about early in 2012, when this happens it’s usually stocks that “catch down” to bond yields. The 10-yr Treasury ended the week all the way down to 1.852%. Continue reading
Is This The Never Ending Rally? Techinicals & Copper Prices May Be Warning Otherwise
Good morning and welcome to another Monday Morning Market Commentary. Thank you for taking the time to read/watch this week. This week we saw stocks rally sharply throughout the whole week, leading the Dow Jones Industrial Average to reach it’s highest level ever and the S&P 500 to come within 1%, and bonds followed suit, with the 10-Yr Treasury yield back above 2%. We had a good employment report on Friday but some very worrisome reports out of China throughout the week.
This week I cover a little bit of everything: some economic data, some fundamental data, and a little technical analysis.
Markets Stumble As Fed Talks About When To End Easy Money Policy
Good morning and thank you for reading/watching this week’s market commentary! This week investors seemed to take a breath and at least question, for a minute, how much more this rally can continue. The question didn’t come about for a small reason or just another short-term economic report, but for the biggest question of all: when will the Fed stop printing money and let the markets work on their own. This has been a huge question and worry for investors over the last few years and, for the first time, we have been given a warning that the music may end soon.
Stocks were up slightly into Wednesdays FOMC meeting minutes release, which is when we heard that the Fed is contemplating slowing down or stopping the bond purchasing program (money printing) sooner than originally thought. This brought stocks down across the board, with the S&P 500 trading below 1,500 on Thursday. Stocks did rally on Friday after a few economic reports from Europe were slightly better than expected. The S&P 500 did fall just over 1/4 of a percent for the week, to close at 1,515.60.
Bonds yields followed suit with the stock market and ended the week lower. The yields did not rise on Friday like stocks though, and closed the week near their lows, with the 10-Yr Treasury yielding 1.967%.
This week I’ll also talk about what the Philadelphia Fed Survey, Russell 2000′s bollinger bands, and the S&P 500′s relative strength index is signaling for the future of the markets.