March 11, 2020
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
Dow Futures were unable to hold the 25,000 level overnight and have been giving back much of yesterdayâ€™s 1,167-point rally. Currently, Dow futures are trading near 24,235 down about 615 points or 2.6%. US index futures are, however, holding well above Mondayâ€™s lows which for the Dow were near 23,850 (market close) or 23,400 (intraday low). Â Similarly, although WTI crude oil is down 3.0% today, the current level near $33.35/bbl is well above $30.00, and Mondayâ€™s intraday low of $27.34.
European indices are up 0.4% to 1.2% this morning on news of more stimulus on the way to help the global economy. In a surprise move, the Bank of England cut its benchmark rate by 0.50% to 0.25% and cut capital buffers for banks to free up liquidity. The European Central Bank meets tomorrow with investors hoping for more action on stimulus to offset the impact of coronavirus, particularly in Italy. Canadaâ€™s government is expected to announce a package of fiscal support measures for individuals, businesses and provinces today.
Joe Biden has widened his lead over Bernie Sanders for the Democratic Presidential Nomination last night. Biden, who appears to be Wall Streetâ€™s preference of the two, won in Michigan, the biggest prize, and three other states, while Sanders only won in North Dakota with Washington essentially a tie. Next week sees more of the larger states voting, Florida, Illinois, Ohio and Arizona. If Biden continues to do well, the window for Sanders to catch up could close rapidly.
Although trading remains volatile, capital flows into defensive havens appear to be subsiding. The Yen is down 0.8% against the US Dollar this morning, bond prices and treasury yields are steady, and gold while up 0.4% to trading near $1,665/oz remains well short of its recent intraday high near $1,700.
New Video: Market Commentary – March 10, 2020
With Jeremy Fehr – Founder of SIA Wealth Management and SIACharts.com
Click Here to watch a new webinar of Jeremy Fehr, CEO of SIACharts, discussing additional changes in the Asset Class Rankings, what he is seeing in the markets currently, and the impact going forward. A PDF version of the presentation is available. We will record another update if there are changes so please watch for future updates.
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