Moreover, since the 10Y rates are now down to 3.46%, money comes naturally back into equities which will not be overvalued before the $4200 level.
Treasuries and small caps are still bought, indicating that investors expect rates NOT to climb from here.
This situation benefits both large and small companies
as well as growth stocks
or even the perpetually indebted biotech companies
Only the precious metals sector seems to be weakening here,
while copper is in a strong uptrend
The ratio of sectors on a short wait mode is now at 90%. This means that 90% of all the sectors that I monitor are in a buy mode for now. This indicates exuberance.
if you look at the long-term view of that indicator, we reached that level on May 16, 2013 and the $SPX stayed flat for one month before pushing much higher later.
Conclusions:
Markets point to higher prices.
Below is the liste of trade ideas for the coming days. The most interesting are shown in Yellow.
