Financial Markets Summary
Friday, April 7, 2017
- The sideways trading in the stock market has continued after rallying off of the late March low level. The market action has been similar for the various indices.
- The technology sector has lifted the Nasdaq Composite to be the strongest of the various major market indices. An over weighted financial grouping has hurt the Russell 2000 Index coupled with the general weakness in the small capitalization market. The sideways trading of the index has lasted over three months following the near vertical move achieved immediately following the election.
- Any pullback provides appropriate short term caution for traders. The intermediate and long term trends provide better direction for investors and they continue to point higher as they have for quite some time.
- Oil has closed higher seven of the last eight trading days. The rally has pushed oil right back into the resistance zone, which has ranged between $51-$52 a barrel. This is positive as oil tested support at the $47 a barrel level three times before the rally began. Oil closed yesterday above $51.60 a barrel.
- Corn, soybeans and wheat have lost their upside momentum off of last year’s low and now run the risk of possibly testing that low.
- The yield on the ten year U.S. Treasury note has traded in a tight range since the beginning of December. The high has been 2.621% in the middle of December, while the low level of the range 2.30% occurred at the beginning of December. That range has stayed intact ever since.
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.