Craig Johnson’s

Financial Markets Summary

Thursday, October 19, 2017

  • Oil has shown strength this past week as it approaches the recent high at the end of September just under $53 a barrel. The price remains in the multiyear trading range that has existed with the lower band near $42 a barrel, while the top of the range is near $55. This sideways range has kept oil from being able to establish an intermediate trend to counter the long term downtrend, which has been in effect since 2008 when oil hit a high of $146.65 a barrel.
  • In the fixed income market, yields have been moving higher across all maturities of U.S. Treasuries since early September. Whether this rise is sustainable or not remains unknown and becomes even more questionable on maturities of five years or longer in which yields are still well below levels reached earlier this year.
  • Gold, after challenging resistance in early September, has made little progress. Since then, gold has fallen four weeks in a row, had a mild bounce higher over the last two weeks and has left investors less than enthused about its prospects.
  • Gold and the U.S dollar have moved in opposite directions. Gold reached its recent high while the dollar reached its low on the same day in early September. This inverse relation is fairly typical of how these two markets react to interest rate expectations.  

Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's BusinessDaily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.
 
Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results.

 

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