Stocks head into Monday morning on a four-week winning
streak, but the futures are showing small losses heading into the opening bell.
The Japanese stock market continues its unfathomable rally
overnight with the Nikkei up 1.5% after positive remarks from the government
and a better than expected manufacturing number. The Nikkei is now up 47% in
2013.
ETFs to Watch: EWJ, DXJ, FXY
Both Gold and Silver continue their ominous slide overnight
with silver down as much as 3% at one point. Both metals have bounced well off
the lows, but the trend is clearly not in the favor of precious metals. I
continue to have steer clear of the sector until a bottom is formed and the end
of the selling is evident.
ETFs to Watch: GLD, SLV, GDX, IAU
In another sign that investors are believing the Eurozone
situation is improving, the yields on Italian debt fell as the country’s
industrial orders number beat expectations. The spread between the 10-year
German Bunds and the comparable Italian government debt has narrowed to the lowest
level since January. Even Slovenia saw its yields fall overnight after a
downgrade by Fitch.
ETFs to Watch: ITLY, BUND, BWX
Patience vs. Go-For-It – The market is sitting at an
all-time go begin the new week and therefore chasing performance is never the
best strategy. That being said, investors that have been waiting for a 10%
pullback have been sitting on their hands for a long time and missing out on
the stock market rally. My advice is to highlight the stocks/ETFs you want to
buy and when there is a day or two of weakness – begin to build a position. A
mix of go-for-it and patience.
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