Euclid Investment Advisory Blog

Review & Analysis at Close March 21, 2022

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Equities

For the week, all US Equity indices jumped off their recent lows. The Russell 2000 gained +6.6%, the S&P 500 +6.9%, the NASDAQ Comp +10.1%, and the NASDAQ 100 +10.2%. Foreign markets: Europe 5.2%, Emerging Markets 7.2%, and China +16.3% after a recent selloff.

  • Equity Style Tech Score Ranking: One-week price change saw another turnaround with US large, mid-, and small cap Growth indices beating their Value versions.

  • Sector Tech Score Ranking: One-week price change ranking: Consumer Discretionary, Technology, Communication Services, Materials, Financials, Health Care, Industrial, Consumer Staples, Energy, Real Estate, and Utilities.

Bonds
The 30-year US Treasury Yield held at 2.534%. However, the 10-year US Treasury Yield continued rising to 2.315%. Both Yields are short-term overbought. Bond prices fall as yields rise.

The volatile 2-year US Treasury Yield again rose sharply to 2.12% from 1.87% last week.

The 2yr-10yr Yield Curve flattening continued. The spread decreased to 0.18 bps from 0.23.

Currencies
Currencies vs. US Dollar: The Australian Dollar appears to have bottomed and rose slightly. The Euro, still in a downtrend, rose slightly and settled at 1.102.

US Dollar vs. basket of major currencies: The US dollar, in an uptrend, pulled back slightly from overbought and settled at 98.50. Its advance may encounter resistance at 100.50.

Gold, after spiking up sharply to 1930 and very overbought, pulled back to 1806.7. Its Q1 2020 (COVID era) high was 1944.5.

After last week's sharp rise in equity prices, there may be backing and filling this week. We may have had a welcome relief rally in a Bear market, or we may be seeing the first shoots of the Market's spring. The markets have yet to rise through their descending weekly intermediate and long-term trends.

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