From the desk of Steve Strazza @Sstrazza and Louis Sykes @Haumicharts
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the relative strength trends at play and preview some of the things we’re watching in order to profit in the weeks and months ahead.
We discussed markets remaining more or less a mixed bag over recent weeks/months. At the same time, we’ve pointed out how the weight of the evidence continues to tilt gradually in the direction of the bulls, particularly due to the action we’ve observed in key risk assets.
This week, we saw that trade unwind a bit as most risk-assets were lower on the week. We’re going to need to see a lot more data come in to support a sustained rotation into these more cyclical areas as well as reverse some of these long-term relative trends.
So, after a big week of progress, we’re right back to an increasingly bifurcated market environment.