Morning Minutes 3/27/2020

Morning Minutes

Stocks and Gold Backslide Ahead of the Weekend

March 27, 2020

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

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.”

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.