Morning Minutes 3/27/2020

Morning Minutes

Stocks and Gold Backslide Ahead of the Weekend

March 27, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

The three-day rally which saw some markets soar more than 20% up off their lows, appears to be running out of gas with several markets dropping back this morning. There hasn’t been much in the way of market-moving economic news so far except that the US coronavirus case count has now surpassed China’s official reports.

The US House of Representatives is scheduled to vote on the US fiscal stimulus package today. The street is expecting the bill to pass comfortably considering bi-partisan support and unanimous approval in the Senate earlier this week. Given the strength of the three-day trading bounce, it appears that traders may be taking some short-term profits off the table or that short covering may be subsiding for now.

Currently Dow futures are down about 725 points or 3.2% while NASDAQ futures are down 2.6%. European indices are down about the same or more with declines of 3.5% for Germany and Italy. The FTSE is down 5.0% today, influenced by a 0.5% gain for the Pound and reports that PM Boris Johnson has tested positive for coronavirus.

Gold also appears to be seeing some profit-taking from traders coming off of a recent rally falling 1.7% today toward $1,630/oz. Silver is also down 1.7%. The US Dollar is mixed, falling 0.5% against the Pound, 0.8% against the Yen and 0.4% against the Loonie but gaining 0.25% on the Euro. The US 10-year treasury yield is steady near 0.75%. Commodities are also sliding back today with Brent Crude dropping 2.5% but holding above $25.00/bbl for now, while WTI crude is down 1.1% trading just below $22.50. Copper is down 0.4%.

Replay of SIA Wealth on BNN Bloomberg, 3:00 pm Thursday March 26th

TSX surges into bull market territory

“Colin Cieszynski, chief market strategist at SIA Wealth Management, talks about the Canadian market surge into bull territory. He says amid the virus volatility, his company has exited all of the equity positions and moved fully into short-term positions in the money market and long-term debt positions.”

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