Morning Minutes 3/11/2020

Morning Minutes

Europe Rallies, US Drops Back Amid New Stimulus Announcements

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
ccieszynski@siawm.com
+1 (647) 282-4428

Dow Futures were unable to hold the 25,000 level overnight and have been giving back much of yesterday’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 Monday’s lows which for the Dow were near 23,850 (market close) or 23,400 (intraday low).  Similarly, although WTI crude oil is down 3.0% today, the current level near $33.35/bbl is well above $30.00, and Monday’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. Canada’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 Street’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.

Disclaimer: 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. 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.