Euclid Investment Advisory Blog

Review & Analysis at Close September 13, 2021

Comments

Most stocks and stock indices fell last week - the most since February. Investors are watching the Fed's plans to slow its bond buying purchases later this year as the central bank begins to reduce the easy money policies which were intended to stimulate the economy and resulted also in stimulating the stock market. Last week's jobs report showed hiring slowed significantly in August (a vacation month). The sharp rise in Delta variant cases hampered economic recovery as businesses limited travel and consumer sentiment fell. Although Delta variant cases appear to have peaked, there is concern of a virus induced slowdown.

Equities

The NASDAQ, S&P 500, and European indices are strategically Bullish; Mid and Small Caps are weaker than the S&P 500; Emerging Markets on Bull Alert; China Bearish.

Equity Styles: Large Cap Growth leads Large Cap Value: Large caps lead the Small, Mid Cap and equal weight indices. All pulled back last week.

Ranked Sectors: 

  • Leaders- Real Estate, Technology, Health Care, Communication Services
  • Laggards - Materials, Consumer Staples, Industrials, Energy

Interest Rates

The downtrends of the Yields of 30-year US Treasury Bond and 10-year Note are slowing, forming bottoms and indicate expected higher rates in the foreseeable future.

The flattening trend of the Yield Curve continues slowing, indicating we could expect steepening in foreseeable future

Currencies

The Australian Dollar, the Euro, and the British Pound all show short term strengthening while in long term downtrends.

The US Dollar shows short term weakness after making a double top while in a long term uptrend.

Gold is short term choppy in a slight long term downtrend.

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