From the desk of Steve Strazza @Sstrazza
Our Top 10 Charts Report was just published. In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.
The Breakout Brewing In Texas Tea
Last week we had a major development for risk assets as the US 10-year and US 5-year yields made decisive moves higher from their recent consolidations. Now this week, we have another significant resolution to talk about… Crude Oil just blasted through its 2018 highs around 76. This is all a part of the reflation, global growth, and reopening trade. The fact that oil was able to do this in the face of a rising dollar only makes it more bullish in our opinion. It’s also worth noting that Energy stocks and other energy futures besides crude are much more supportive of this price action than they were when crude last tested this level back in July. At that time, futures weren’t confirming and energy stocks had already rolled over after peaking in June. This time around, things look much different. We think the breakout sticks, but we need to see some follow-through from price to confirm it in the coming days.
