Euclid Investment Advisory Blog

Review & Analysis at Close July 5, 2022

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Equities

US Equities: For the 5-day period ending July 5, all three major US equity indices rose 0.34% (S&P 500) to 1.2% for both NASDAQ Comp and NASDAQ 100. VIX rose a bit to 27.54.

For the same period China fell 0.63%, Europe fell 3.93%. The 2-10 UST Yield curve long term trend remains flattening; spread narrowed to 0.0 from 0.12. For the five day period, eight sectors rose: 0.13% (Utilities) to 2.51% (Consumer Discretionary). Three sectors dropped: 0.44% (Financials) to 7.9% (Energy).

Oil (West Texas Light Crude) closed today at $99.50/bbl, down from $108.40/bbl the previous trading day.

Second quarter earnings season is approaching. Of greatest concern will be forward guidance.

 

Fixed Income
The 10-year US Treasury yield fell to 3.012%, down from recent peak of 3.483%. The 2-year US Treasury yield fell to 2.82% down from recent peak 3.45%. Yields have peaked near-term.

Currencies
Currencies vs. US Dollar: The Australian Dollar, the Euro, the British Pound, and the Japanese Yen remain in long-term Bearish trends vs. the US Dollar. The Bullish US $ rose to 106.32, a new high.

Gold entered a Bearish downtrend May 9.

Base metals fund (Cu, Al, Zn) turned Bearish May 2, Copper turned April 25th and both show oversold condition. These moves signal a slowing economy.

Sector Strategic Trend Score: Ten Bearish, one Bear Alert (Utilities).

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