Morning Minutes 1/8/2019

Morning Minutes

Building Up Walls and Tearing Down Others

January 8, 2019
8:45 am EST

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

Special Event: BMO SIA Focused Funds Webinar With Jeremy Fehr

Date: Wednesday, January 9, 2019

Time: 2:00 pm EST, 12:00 pm MST

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SIA Wealth Founder and CEO Jeremy Fehr will be providing a market update and an inside look into SIA Wealth Management’s investing process, particularly as it relates to our two new Exchange Traded Funds, the BMO SIA Focused Canadian Equity Fund (ZFC), and the BMO SIA Focused North American Equity Fund (ZFN). These are tactical equity solutions designed to gain access to the technical and relative strength analysis expertise of SIA Wealth Management in a high conviction, unconstrained portfolio of 15+ equities.

Morning Market Commentary

Walls, physical and legal, have become the topic of the day for investors. With the US partial government shutdown dragging on with no end in sight, President Trump has scheduled a television speech for 9:00 pm EST to discuss the Mexican Border Wall issue with the potential he could declare a national emergency. This would apparently give him the power to fund the project without going through Congress and break the budget impasse.

While working to build a physical barrier on its southern boundary, the US continues to work toward tearing down trade barriers with China. It could take until the March 1 deadline to get a deal done but progress to date helped Asia Pacific markets to shrug off profit warnings from consumer tech giants LG and Samsung. The Nikkei gained 0.8% on the day with the Hang Seng rising 0.15%. Meanwhile in Europe, stocks have been climbing a wall of worry this morning with the FTSE and Dax both gaining 1.0% despite ongoing Brexit uncertainty and disappointing German industrial production data which suggested Europe’s largest economy could potentially be sliding toward a recession.

Building on positive overseas momentum, US index futures have been pointing toward a positive open. Dow futures are up nearly 200 points as they look to build on Monday’s 98-point gain. Crude oil contracts are up another 1.4% as WTI and Brent continue their advance toward $50.00/bbl and $60.00/bbl respectively ahead of this afternoon’s API weekly US oil inventory report.

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