Risk-free moves are coming back | Investing.com
Let’s go straight to the graphics (courtesy of www.stockcharts.com).
S&P 500 and Nasdaq outlook
Despite yesterday’s rally, continues to the side and not all indicators are clear on the bulls’ broad outlook. The vulnerability to a bear raid is still very much present.
Credit markets didn’t really turn around yesterday. The feeling of risk aversion remains very present despite the iShares iBoxx $ High Yield Corporate Bond ETF (NYSE 🙂 wiping out intraday losses. Stock market bulls have not come out of the woods despite improving market width.
Gold, silver and miners
The strong performance of the miners yesterday bodes well for both precious metals, and I am looking for further gains in the sector. Remember that falling real rates due to risk-free bond moves increase the attractiveness of gold just as much as concerns about a slowing economy or external shocks.
Yesterday’s decline has been partially bought off, and the energy sector rally (excellent performance within the S&P 500) would soon indicate a turnaround. I am not convinced that the bottom is there and that the bears have had their last word.
traded on a low note yesterday and has yet to stabilize convincingly. The volume indicates that the buying interest is not there.
The trade has hardly changed, both cryptos are more than likely to go higher next, although indicators do not yet strongly point to this possibility. If they did turn away from here (probably in the current atmosphere, alongside precious metals), that would be a promising sign for the bulls.
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