Sunday, December 4, 2016
Trends for December - Dispersion Within Sectors
Key financial market trends show continuation as we enter December. Down trends in bonds and rates may show some weakening after the strong moves in November, but there are few signs of reversals. Dollar strengthening is linked to the bond moves based on expectation of increased US growth and Fed action. Energy markets show a strong uptrend on announced OPEC production cuts. The US equity rally post-election is slowing. This stock rally never occurred in global markets. There are limited trend opportunities in precious metals and slowing trends in base metals. Commodity markets are mixed based on large dispersion in supply and demand conditions.