Risks Are Rising, Breadth Is Falling

Risks Are Rising, Breadth is Falling The S&P 500 has rallied to the 2,800/80 resistance zone with an increasing number of negative divergences, hinting that the move from Dec 2019 is close to a finale.  The Canadian Financial sector is likely to correct greater than 15%, as it moves into the 4-year cycle low. The move down in Can 10-year rates is stretched and rates can consolidate or even have a counter-trend bounce higher as it digests recent price action below the 1.80% resistance level. Market Trends The S&P 500 daily cycle is in the final stage of topping, which will lead the topping of the weekly cycle as well. Can10yr rates triggered a daily sell signal, but this move into the daily cycle low should be counter-trend move before rates continue lower. USDCAD daily cycle is topping, while longer-term weekly and monthly cycles remain positive. TRI Cycle & Trend Signals* The TRI Cycle and Trend Signals are shown below.  These signals are as of market close on March 29, 2019.  Please see the TRI Overview document for further information. Source: Fieldhouse Capital Management Equity – Risks Are Rising, Breadth Is Falling The S&P 500 has rallied to the 2,800…

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Total Return Investor – October 2018 Commentary

Market Overview The global economy is facing numerous economic headwinds including higher interest rates and falling fiscal stimulus. TRI expects an increased level of volatility and re-pricing of risk assets in 2019 and early 2020.  TRI encourages investors to assess liquidity levels in their portfolios along with risk exposures to weather the potential economic slowdown that we believe is building steam. TRI recommends investors move their portfolios into a defensive structure to preserve capital and source income from highest quality and liquid assets. TRI expects great buying opportunities in late 2019 or early 2020. Macro Trends [Read the full report]...

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