“Only those who will risk going too far can possibly find out how far one can go.”
— T. S. Eliot
For the full dashboard, please click on ‘Download’ below:
Daring equity investors pushed the Nasdaq 100 to new all-time highs,
just as the US 10-year Treasury yield hit new cycle highs too, briefly reaching 5.35%:
And cycle in this case translates to 24 years!
Breadth was actually a tad better than the past two weeks or so, when participation on up days was meagre and mostly limited to the Mag 7.
However, the S&P 500 equal-weight (red) index is still strongly lagging its market-cap weight version (grey):
Whilst the Fed is still expected to hike three times over the next twelve months,
the chances for an October hike have been plummeting after last week’s softer-than-expected ISM and NFP and some dovish Fed talk over the weekend:
This has help small-cap stocks (Russell 2000) to rebound from an interesting technical support zone:
And then there was of course Brazil … the iShares MSCI Brazil ETF catapulted nearly 13% higher after first round elections put Lula against the cords and Bolsonaro into a very comfortable position to win the second round elections:
The index closed a gap that opened at the beginning of the COVID crises over six years ago!
And sorry for not talking more Europe, but it continues to be a struggling market:
A clear break above that dashed neckline from a shoulder-head-shoulder formation is necessary to avoid further deterioration.
Upheaval is all around in Europe: Spanish snap elections, French budget woes and upcoming elections, Danish data leaks, social unrest in Belgium … no wonder Eurozone bond-to-Bund spreads are moving higher!
That’s all for today - have a great day - and yes - May the Trend be with You!
André
Here’s just a sweet reminder that when you buy the S&P 500 you are not really buying a broad-diversified, multi-industry exposure you may have been hoping for. Here’s what you get for every $1 invested into that magnificent (pun obviously intended) index:
The Important One:
Everything in this document is for educational purposes only (FEPO)
Nothing in this document should be considered investment advice
Investing real money can be costly; don’t do stupid shit
Leave politics at the door—markets don’t care.
Past performance is hopefully no indication of future performance
The views expressed in this document may differ from the views published by NPB Neue Privat Bank AG
The Legal One:
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