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Chameleon Asset Strategies Blog

All of the pieces are in place- Nothing left to do but watch and wait.

07 Mar 16 Written by  Published in Blog
All of the pieces are in place- Nothing left to do but watch and wait.

All of the stock market index futures have rallied into areas of supply and momentum appears to be slowing. Copper and Oil have blasted higher where they should now encounter selling pressure for the first time in weeks. The US dollar index has been taking a hit as of late and providing a tailwind for most commodities. It still has a bit further to drop before finding demand, but at that point it will likely become a headwind instead.

 

Gains in the Nasdaq futures have been noticeably weak compared to the S&P and Russell due to lack of exposure to energy and materials. Both areas have experienced a combination of bottom fishing and short covering – neither of which are representative of sustainable progress. I’d expect it to try to catch up if for some reason we get wonderful news, otherwise it appears ready to lead to the downside. I’m of the persuasion that we’re still in an environment where investors are shedding risk and seeking stable, more reasonably priced assets so the relative underperformance and further slide fits the narrative.

I’ll be looking for short opportunities in equity futures and buying opportunities in US treasuries and Gold.

 

All the best,

Stephen

 

Read 365 times Last modified on Monday, 07 March 2016 20:38
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