Inflation Fears Drive Shift to Value

In the midst of rising inflation expectations, i.e. 10-year breakeven inflation targets climbing to a new 8-year high @ 2.59%, investors are increasingly shifting their preferences to value. The Dow 30 Industrials escaped today’s selling almost unscathed. As inflation indicators signal rising risks, tangible assets, e.g. commodities and real estate, are likely to benefit, along with stocks representing sectors in energy, materials and financials.

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Without Data, What Else Can One Expect?

Market Moving Event: Core Durable Goods Orders were today’s only major data. Since they aligned with expectations, the market lacked a catalyst to drive stock indexes notably higher or lower. Therefore, a flat day and contracting volume were somewhat expected. Yet, there is always tomorrow or the day after, which will be exactly the case as @ 100 SP-500 constituents report earnings over the next two days. If that is not sufficient, then look to this Wednesday’s release of …

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Capital Markets Technically Speaking: 3-26-2021

SP-500: Bullish reversal is in play and now it needs to overcome resistance @ 3984 to confirm legitimacy. 10-Yr Note Yield: Bullish reversal is indicating a resumption in rising rates. Bitcoin: Selling has ceased and another bullish reversal pattern has formed to establish a higher low on the recent pullback. This translates into continuation of the bullish trend.

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