• Comments for January 30, 2017

    Markets were slightly weak on Friday.



    Biotech and XLV continued however to attract money.





    The Energy MF continues to display strength, even though CVX was down after announcing earnings. Let's wait for XOM 's earnings tomorrow!





    Weakness in the US$ puzzles me. I have been expecting a US$ bounce, but nothing is showing up for now, even though the Euro broke below support of its trend line.





    The 20Y bounced hard in the past few days. This is also puzzling, because rate differentials are still rather high and money should be moving into the US$ and US assets.



    Both a weak Japanese Yen and a weak gold bounce also point to a stronger US$.





    At least, S&P500 futures are not under heavy pressure.



    Conclusions:

    The fact that XLV is stronger than IBB in terms of Money Flow probably indicates that the big money is chasing after buying opportunities in large caps that are somewhat oversold. This is why I bought a long JNJ while keeping a half short IBB position.

    This is also a reason I am interested in XLE, but we need to wait for XOM earnings.

    Below are a few ideas. VRSK and NTRS look the most interesting