The quarter comes to a close and it ends on a positive note, but there is still some chop in the markets. There was renewed interest in gold today as well the base metals. Oil moved lower again and put some pressure on the energy sector again. The mixed movement in the sectors shows the lack of clarity from investors and the willingness to speculate on specific movements short term. This type of market requires patience and focus to keep from chasing rabbits down dark holes. Remain discipline and don’t worry about what others are going focus on what you are going.
Notes to Note:
- Volatility started higher, but you could tell by the action in SVXY that it wasn’t going to last. Plenty being written on the issue of low volatility, but until it shows up in earnest I am not going to worry about how low it goes.
- Small cap Russell 2000 index continues to make progress on the upside. Look for a move above 1193 as the next positive for the sector.
- S&P 400 Mid Cap index is making solid progress on the upside as well. Closed at new high today and in position to continue higher as well. Technology is helping overall.
- Gold moves to $1328 and up more than 1% on the day. That pushed the miners higher and the junior miners were the leader on the day gaining 4.2% on the day
- Base metals (DBB) have been making a move higher as well. Copper and steel were both higher on the day as well.
- Interest rates on the thirty-year bond are holding again at the 3.34% and TLT rallied again. No fear to speak of in the broad markets, but still money flow to safety assets. Watching this move short term. Ten year is at 2.51% and testing lower.
- AMJ and other MLPs continue to move higher as the money rotation gains confidence that rates are staying down for now and money is looking for higher yields.
- The chart below of the NASDAQ index shows the break above the March high and the continuation of the current uptrend. All positive as we end the first quarter and start the second half of the year.
Solid day for the markets to keep the upside in play. Still plenty of work to do if the buyers are going to maintain control of the process. We again focus on taking it one day at a time and maintaining our discipline relative to the objective.