Commodities were strengthening led by strong performance in crude oil, the GSCI made its best weekly gain in 2012. Meantime stocks and bonds finished almost flat for the week; stock traded with extremely low volume since the rally started in December (excluding the holidays session). Housing data resulted mixed in January on both existing home sales (4.57m vs. 4.70m est.) and new home sales (342k vs. 315k est.). University of Michigan consumer sentiment reached its 52weeks high as employment continued to improve. The short-term Treasury yields buoyed by optimistic economic data, the 2yrs note rate traded at its 6months high. Plenty of important economic data are announcing next week, investors will be focusing on the consumer confidence, Chicago PMI and the ISM manufacturing index.
Technical Highlights:
• Price of crude oil lifted commodities; Stocks traded at its lowest weekly volume since the rally started.
• Equity trend unchanged as momentum weakened across major indices.
• Energy stocks benefited from crude oil; the sector outperformed the market in the second consecutive weeks.
• Historical returns continued to bias toward energy stocks; other sectors have upside exposure but they should be traded cautiously due to downside potential.
• The yields curve was trading at its three months high; the 2yr note rate bounded back at its 200day moving average, which becomes a major resistance looking forward.
read more at...
Alpbeta: Plus
or
http://plus.alpbeta.com/report/201208.pdf
Technical Highlights:
• Price of crude oil lifted commodities; Stocks traded at its lowest weekly volume since the rally started.
• Equity trend unchanged as momentum weakened across major indices.
• Energy stocks benefited from crude oil; the sector outperformed the market in the second consecutive weeks.
• Historical returns continued to bias toward energy stocks; other sectors have upside exposure but they should be traded cautiously due to downside potential.
• The yields curve was trading at its three months high; the 2yr note rate bounded back at its 200day moving average, which becomes a major resistance looking forward.
read more at...
Alpbeta: Plus
or
http://plus.alpbeta.com/report/201208.pdf