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Showing posts from June, 2014

June 28, 2014 – Weekend Market Comment

June 28, 2014 – The Dow and S&P 500 edged lower on Friday following a downbeat second-quarter forecast from DuPont, though consumer sentiment data helped support the market. Among the day's positives, U.S. consumer sentiment rose more than expected, according to the Thomson Reuters/University of Michigan's final June reading, though that follows weak reads on consumer spending and first-quarter economic activity earlier this week.

Trading volume, which has been below average in recent weeks, and saw heavy action going into the close as Russell Investments announces the final reconstitution of its indexes, affecting more than $5 trillion in assets.

After hitting a new high last week, the Russell 1000 iShares (IWB) was hit with sudden selling pressure on Tuesday afternoon. This reversal day certainly looked negative on an intraday chart, but it was not enough to affect the immediate uptrend, there was no downside follow through as IWB held above 109 the whole week. While th…

June 21, 2014 – Weekend Market Comment

June 21, 2014 – U.S. stocks rose on Friday, driving the Dow and the S&P 500 to close at record highs as the shares of 330 companies hit 52-week highs on the New York Stock Exchange. The S&P 500 scored its third record closing high in a row while the Dow surpassed its previous record close on June 10. The blue-chip index hit an all-time intraday high at 16,978.02, coming close to the 17,000 mark. For the week, the three major U.S. stock indexes rose 1 percent as investors brushed off geopolitical concerns about Iraq and focused on the Federal Reserve's comments indicating that it will keep interest rates low for a long period of time.

Canada's main stock index was little changed on Friday as a decline in shares of gold miners was offset by strength in the energy sector, which extended a solid run since the start of the year. Energy shares received a boost from the continuing conflict in Iraq, which fueled worries about oil supply in the region and helped push up the pr…

June 14, 2014 – Weekend Market Comment

June 14, 2014 – Escalating violence in Iraq drove crude oil prices to nine-month highs on Friday while damping the appetite for risk, even as bullish news from the U.S. tech sector lifted shares on Wall Street and helped buoy stocks in global equity markets. Brent crude edged above $113 a barrel, up more than $4 this week, on concerns that an insurgency in Iraq could trigger civil war and eventually crimp oil exports. Iraq's most senior Shi'ite cleric urged his followers to take up arms to defend themselves against advancing Sunni militants, escalating a conflict that threatens civil war and a possible break-up of the country.
In short the markets were worried that the price of oil would act as a brake on the current rally. When consumers buy gas at higher prices they don't buy other stuff. Frankly if this news came two weeks ago the market would have shrugged it off. The real story is that this rally has been running since April 11th and running hard. Everyone can see the…

June 7, 2014 – Weekend Market Comment

June 7, 2014 – This market is on fire. U.S. stocks furthered their record climb this week, with both the Dow Jones Industrial Average and S&P 500 in uncharted terrain, after the May jobs report showed slow but steady improvement in the labor market. In fact almost every sector from aggressive areas like Transportation, Consumer Discretionary and Technology to the safer bets like Utilities all hit new highs this week.
Market skeptics, of course, argue that complacency is again running high on Wall Street, which is worrisome. Citigroup, for example, says its proprietary sentiment tracker has moved further into the "euphoria" stage, which suggests investors are getting overconfident. And in another bad sign, Ned Davis Research says legal insider selling by corporate executives is on the rise, signalling that executives think their shares are fully valued. Of course you don't need experts to tell you this, you have got charts. Look at the VIX at a new record low.

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