Morning Minutes 1/5/2020

Morning Minutes

Stocks Consolidate Losses With OPEC+ Meeting and Georgia Runoff Vote In Focus

January 5, 2021

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

Yesterday’s attempt at a New Years Rally turned out to be very brief as stocks tumbled yesterday to start the new trading year, sending US indices down 1.25%-1.50%, on a combination of profit-taking and concern over the impact of lockdowns on the economy after UK PM Johnson extended the UK lockdown into February, and US construction spending for November came in below expectations (0.9% vs street 1.0% and previous 1.6%).

This morning finds US index futures and major European indices flat as investors digest Monday’s bearish turn of events. In North America, the spotlight is on today’s runoff election for two Senate seats in Georgia which will determine which party controls the upper chamber. US ISM manufacturing PMI (street 56.6 vs previous 57.5) is due out at 10:00 am EDT this morning.

WTI and Brent crude oil are both up about 1.4% today as investors await news from an OPEC+ meeting being held today to discuss production levels. Even though the group just implemented a smaller than initially expected production increase this month, a new 0.5 mmbbl/d production cut is reportedly on the table to offset the impact of new and extended lockdowns on near-term demand.

Gold and silver are up for a second straight day, this time posting gains of 0.25% and 0.80% respectively, indicating that some of the capital coming out of equity markets this week has been rotating into defensive havens including precious metals and the Japanese Yen. Sentiment remains positive toward metals in general with copper climbing another 1.1% and platinum rallying 1.75%.


SIA Wealth In the Media

Chief Market Strategist appeared on BNN Bloomberg recently to discuss relative strength in current markets and the outlook for early 2021. A replay link is below.

Commodities have been the stronger relative performers in the last three months: SIA’s Cieszynski


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.