December 31, 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
It has been quite a volatile month and year for US markets. This morning finds US indices shrugging off Fridayâ€™s day of mixed consolidation and pointing toward a positive open with Dow Futures up 241 points or 1.0%. Overseas, the Hang Seng gained 1.3% while the Dax is up 1.7%.
Since its December 24th low, near 21,800 the Dow Jones Industrial Average has recovered over 1,500 points and over 6.5%, taking the edge off some of the big losses seen earlier this month. At Fridayâ€™s close, the Dow was down 6.7% year to date, so it appears likely weâ€™ll end up with the first down year for the Dow since 2015 and its worst year since 2008.
Todayâ€™s rebound has mainly been attributed in the press to positive comments from US President Trump following a call with Chinese President Xi over the weekend on trade. Apparently, progress is being made toward a big US-China trade deal. There hasnâ€™t been any recent progress toward ending the partial US government shutdown. Perhaps in the new year weâ€™ll see some movement, particularly after the new Congress starts later this week, which could have a positive effect on stocks as well.
I also think a combination of window dressing, short covering and bargain hunting could be giving stocks a tailwind early on. Today is quiet for economic news but the back half of the week is looking quite busy with manufacturing PMI reports due Wednesday, US ADP payrolls on Thursday and US Nonfarm Payrolls plus Canada employment on Friday.
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.