• Comments for February 2, 2017

    Markets opened on a gap up, but were slightly weaker during the day, without breaking down.



    One of the weakest sector was XLF, while health related sectors and gold miners performed well.









    The FOMC made no statement regarding rates, neither positive nor negative, so I have a hard time understanding why the US$ would be weaker.



    We can see that neither the 10Y and 20Y Treasuries are under strong accumulation, which does not imply that the Fed will not raise rates later this year. I guess that we will know more with Friday's jobs report. A strong report will send inflation expectations higher.





    Conclusions:

    Money should continue to flow into US assets. The market does not seem to be anticipating a sell-off.