Morning Minutes 9/18/2020

Morning Minutes

Steady Stocks Await Quadruple Witching, Energy Prices Retreat

September 18, 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

Its Quadruple Witching Day, the one Friday a quarter where index and stock futures and options all expire, which can sometimes lead to volatility as investors close out positions. Today so far, however, volatility appears to be subsiding with S&P 500 futures flat, Dow futures down 0.2% and NASDAQ futures up 0.3%. Overseas markets have also been steady with the Nikkei and Dax rising 0.2% while the FTSE is down 0.3%. The one country that saw significant moves overnight was China where Shanghai rallied 2.0%.

Energy commodities are weakening this morning with WTI crude falling 1.3%, Brent Crude falling 1.5% and Natural Gas diving 3.8%. The impact of Gulf hurricanes appears to be quickly fading now that they have gone through and OPEC+ didn’t make any waves, leaving investors to refocus on the uncertain demand situation.

The Government of Canada’s Throne Speech is coming next Wednesday and ahead of that, Canadian economic reports have been weak. Yesterday, ADP reported Canadian private sector payrolls fell by 205K in August, far worse than the 902K increase the street had expected. This morning, Statistics Canada reported that Canadian Retail sales increased by 0.6% in July, down from 0.7% growth in June, and short of the 1.0% street estimate. Retail sales excluding Autos fell by 0.4% in July, worse than the 0.5% increase the street had been expecting.

 

New Video: Market Commentary and Portfolio Update – September 16, 2020

With Ted Bader – President of SIA Wealth Management, Paul Vendrinsky – Portfolio Manager and Colin Cieszynski – Chief Market Strategist

A new webinar replay is available featuring Paul Vendrinsky, Portfolio Manager, discussing recent performance and activity in the five funds which SIA Wealth sub-advises on for BMO Global Asset Management and Colin Cieszynski discussing current trends in world markets.  A PDF version of the presentation is available.

GoToMeeting Version: https://attendee.gotowebinar.com/recording/585579411904064524

YouTube Version: https://youtu.be/LEbMDBRR0Ck

 

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