Morning Minutes 09/14/2018

Morning Minutes

The Eye of The Storm

September 14, 2018
10:00 am EDT

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

With Hurricane Florence battering much of the US Southeast this morning, North American stock markets are off to a quiet start to the day with the Dow trading up 25 points and the S&P/TSX flat. Trading across world indices, commodities and currencies has been subdued overnight with the main moves of note being the US 10-year treasury yield regaining 3.00% and the Nikkei gaining 1.1%.

It appears that investors are mainly digesting yesterday’s relief rally that was sparked by indications the US and China are ready to talk trade again potentially postponing off a new round of tariffs and countermeasures. Since nothing material has changed, however, markets have gone quiet.

The main overnight economic news has been retail sales reports for the US and China. US retail sales were disappointing coming in a 0.1% growth, short of the 0.4% the street had been expending. Much of the shortfall can be accounted for, however, by an upward revision of the previous month’s growth rate to 0.7% from 0.5%. Chinese retail sales grew 9.0% over year, better than the 8.8% the street had been expecting.

Relative Strength and Sector Rotation Report:
US Retailers are trading down slightly this morning in the wake of the disappointing US retail sales report.

US regional banks retreated on Thursday, this could be related to investors taking profits in sectors focused on the US domestic economy which have been outperforming in recent weeks.

Webinar Replay Information:
Yesterday, SIA Charts hosted its monthly webinar which included comments on the market from Chief Market Strategist Colin Cieszynski. Ted Bader, President of SIA Wealth also gave a presentation about the 2 Funds SIA Wealth runs, specifically focusing on the strong performance of the US tactical pool as well as recent changes that have been made to the Tactical Market Neutral Pool. A link to the replay is below. Colin and Ted each spoke for about 20 minutes, with some questions afterward.

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