Archives » momentum

Momentum | July 18, 2017

Posted on July 18, 2017

Our Observations: Nearly every asset class is close to 0 in near-term returns, indicating that the market continues to be in a state of confusion. A strong push in emerging markets helped reverse the course of near-term momentum. When combined with strong long-term momentum, emerging markets appear to maintain their position as leaders among stocks. Momentum […]

Momentum | July 11, 2017

Posted on July 11, 2017

Long-term momentum in sovereign debt collapsed over the past few weeks as key policy officials in Europe, Canada and the United Kingdom openly discussed the need to begin tightening rates. With negative long-term and short-term momentum, the bond environment appears to be weak. We think this could help push some out further on the risk […]

Volatility | June 29, 2017

Posted on June 29, 2017

Our Observations: Short-term volatility is nearing long-term volatility, which is consistent to a sideways market. We think it is important to keep an eye on shifts in volatility which could coincide with a shift in momentum and help affirm market direction. Market volatility is an indicator of financial stress. Low or declining volatility environments may […]

Momentum | June 27, 2017

Posted on June 27, 2017

Our Observations: Short-term momentum for stocks and bonds is close to 0 (zero) in many markets, which is consistent with a market grinding sideways. We think it is important to keep an eye on changes to short-term momentum for an indication of future direction. Momentum measures the rate of acceleration, either positive or negative, in […]

Momentum | June 20, 2017

Posted on June 20, 2017

Our Observations: Commodities continue to be under pressure. The Federal Open Market Committee (FOMC) indicated in its recent announcement that inflation was expected to fall below the targeted 2%, creating deflationary pressures throughout the global market. While this may have a negative impact on commodities, it has not translated into bad news for stocks, which essentially moved […]

Momentum | June 13, 2017

Posted on June 13, 2017

Our Observations: Stocks have taken a brief pause from their recent push this week while bonds took the lead. Short-term trends have favored bonds as the 10-year Treasury has gone from 2.42% to 2.21% in the past month. Foreign bonds have done even better as the euro has appreciated relative to the dollar. However, we […]

Momentum | June 6, 2017

Posted on June 6, 2017

Our Observations: Interest rates in Europe and the U.S. declined last week, driving up the price of bonds. However, this coincided with fairly strong stock performance. Long-term momentum still favors stocks over bonds, so we think the year’s positive stock market performance should continue. Momentum measures the rate of acceleration, either positive or negative, in […]

Momentum | May 31, 2017

Posted on May 31, 2017

The big story in momentum is Brazil, as political turmoil and fears of military mobilization weigh heavily on stocks and currency. However, this does appear to be isolated, as the rest of the emerging markets and Europe continue to exhibit strong short- and long-term momentum, while bonds continue to show weakness, especially at the long […]