Financial Markets Summary
Tuesday, April 28, 2015
- The U.S. dollar has fallen back into its recent consolidation area. The sideways action is taking place after the 25% move higher from October to early March. The dollar’s recent weakness has helped the larger capitalization stocks that are more likely to be multi-national businesses show strength against the smaller capitalization stocks during the past five or six weeks. The emerging market countries and stocks have also benefitted from the recent dollar weakness.
- On an intermediate term basis, the U.S. dollar remains in a positive trend.
- The yield on the ten year U.S. Treasury note is struggling to get back above 2%, while significant declining resistance is pressuring the yield lower. The yield has now been below 2% for nearly five weeks. It has remained above 1.84% for eleven weeks.
- Since the March low at $42.03 a barrel, oil has rebounded to the $58.60 a barrel area. The successful advance is approaching the first upside target near the high 50’s to low 60’s a barrel, before major resistance gets in the way of a further move higher. A break through that resistance would provide the next target in the high 60’s area. It closed yesterday below $57 a barrel.
- Even though the short term picture has brightened for oil, the intermediate and long term downtrend remains solidly in place.
- Unlike oil, gold continues to trend lower showing no pressure to sustain a move higher, but remaining above the November lows. Gold remains in a long term and intermediate term downtrend.
- Real estate remains attractive.
Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.
Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice. The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness. References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service. Past performance is not a guarantee of future results.