January 8, 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
+1 (647) 282-4428
US index futures are clinging to small gains of 0.3%-0.5% this morning and still building on this weekâ€™s positive momentum which saw the S&P 500 climb 1.5% and the NASDAQ Composite rally 2.5% yesterday. Overseas markets have continued to soar with the Nikkei rallying 2.4%, the Hang Seng gaining 1.2%, the Dax rising 0.7%. The FTSE flat, held back by a strengthening British Pound.
Confirming Wednesdayâ€™s disappointing ADP private sector payrolls report, US nonfarm payrolls dropped by 140K in December which was significantly worse than the 71K increase the street had been expecting. Part of this shortfall can be explained by an upward revision of November payroll growth to 336K from 245K but it still indicates that the new round of lockdowns has started to have a negative impact on employment. Canadian employment fell by 62K in December, wiping out Novemberâ€™s 62K increase and coming in worse than the 27K decline the street had been expecting.
Commodity, currency and interest rate action also suggest that the soft payroll numbers havenâ€™t put a dent in investor confidence. Defensive precious metals Goldl and Silver remain under pressure, falling 1.5% and 2.1% respectively. Meanwhile, crude oil continues to climb. WTI and Brent continue to put $50.00/bbl and $55.00/bbl respectively in their rear-view mirror with gains of about 1.5% for both contracts today. Copper is up 0.3% this morning. Â The US 10-year treasury note yield continues to rise, approaching 1.10%.
Disclaimer:Â 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.Â 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.