Risk-on Friday and NFPs
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Again, today’s report will be way shorter than usual, and focus only on select charts so as to drive position details of all the five publications.
Let‘s move right into the charts (all courtesy of www.stockcharts.com).
S&P 500 and Nasdaq Outlook
Nasdaq did better than the S&P 500 yesterday, and the bulls look primed to extend gains today. The lower volume in a sluggish day before today‘s non-farm payrolls isn‘t an issue – the key question for the coming week is digestion of the anticipated not too bad numbers, which would bring taper closer in the marker‘s mind.
Credit Markets
- The plunge in high yield corporate bonds was more than decisively reversed yesterday, and the quality instruments suffered. Risk-on going into Friday, that‘s a good sign.
Gold, Silver and Miners
Miners‘ renewed weakness isn‘t a good signal going into today‘s session as precious metals were hit by the yield moves and faltering TIPS. Once again, inflation expectations are sending mixed signals with RINF being more resilient than TIP:TLT, and I continue to lean in favor of inflation turning out more stubborn than too many think. The notion of approaching taper is biting too.
Crude Oil
Oil was indeed very close to reversing, and the strong showing in the energy sector bodes well for the nearest days. Local bottom looks to have formed, accompanied by greater resilience in the oil sector than was the case in mid-Jul.
Copper
Copper has turned, modestly thus far – the commodity index increase is more pronounced. Lower volume is a watchout, but the unfolding upswing should overpower it, letting open copper profits grow.
Bitcoin and Ethereum
Resolute downswing rejection in both Ethereum and Bitcoin – what more could the bulls wish for? It wasn‘t evidently sell the news day for ETH – the accumulation in cryptos can continue.
Summary
In place of summary today, please see the above chart descriptions for my take.
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