As we mentioned last month, despite May’s reputation as being a time to sell, other months — June, August and September, in particular — historically produce much worse equity market performance. June is a particularly poor performer, averaging negative performance in both the Dow Jones Industrial Average and the S&P 500.
The coming week (July 1-5) should consolidate in about half of the symbols I track., but some inside-pivots breakouts show as setups in the charts. The S&P 500, yen, Eurodollar (slightly-higher pivots) and gold have trending weekly pivots for next week, meaning conditions are right for fewer directional turns and twists in these and wide-ranges are likely.
MODERN TRADER explores the effect of a potential trade war on U.S. equity markets. Will it end the bull run or will low interest rates allow U.S. equities to maintain its momentum? Read on. We also attempt to identify the key drivers of active equity hedge funds.
The recovery in the stock markets could not last long and by the close of play yesterday all of the earlier gains evaporated. Although equity indices opened higher in Europe this morning, they have since turned mixed with shares in Germany falling and UK remaining positive. U.S. index futures were still slightly positive at the time of this writing, but should Europe turn decisively negative, I can’t see why Wall Street wouldn’t follow suit.
The coming week (June 25-29) should continue the minimally reversing, trending markets moves, but with the addition of rowdy bullhorns in several symbols. The only potential mathematic exceptions are crude oil, soybeans and bitcoin.
Global equity benchmarks are ripping back this morning as trade tensions have found a way into the back seat of investors’ minds. In fact, the small-cap and domestically focused Russell 2000 notched a record high on Monday, matched it yesterday and extended such gains in today’s session.
Risk-off sentiment is sweeping through global markets after U.S. President Trump fired back at China last night. He instructed the U.S trade representative to identify $200 billion worth of Chinese goods to impose a 10% tariff. Crude oil recovered very well yesterday as speculation mounted that OPEC will only raise production 300,000 to 600,000 bpd. However, this morning, crude oil is a casualty of the risk-off, trade war fears.