November 16, 2018
8:45 am EDT
At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.
Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
A volatile week for energy commodities continues, but the direction has changed. Earlier in the week, oil was plunging and natural gas was soaring but heading into the weekend, Oil is on the rebound and natural gas has backed off. Oil had become extremely oversold and natural gas had become extremely overbought by mid-week.
The current reversals following a selling climax for oil and a buying climax for natural gas appear to the normal technical corrections. The short squeeze in natural gas has shifted to profit-taking after the news came out that natural gas storage increased by 39 BCF last week, more than had been expected. Indications that OPEC is prepared to defend the oil price with potential supply cuts has eased selling pressure against Texas Tea and encouraged bargain hunting.
Stock markets around the world are trading moderately lower this morning. Dow futures are down 132 points, giving back much of yesterdayâ€™s 208-point bounce. European indices are slightly in the red while Asia Pacific markets were mixed between China climbing and Japan falling. With the VIX still hanging around 20, elevated but short of recent spike highs, gold steady and the yen dropping slightly, it feels like stock markets are getting past the worst of the recent panic but are still struggling to regain their footing. Outside events like US-China trade talks and Brexit continue to rise and fall in importance as we work through a tense market environment.
Disclaimer:Â SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable.Â SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.