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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 […]

Momentum | May 23, 2017

Posted on May 23, 2017

Our Observations: Despite the sell-off last Wednesday and the sell-off in Brazil, global markets are still embracing risk. Both short- and long-term indicators are strong across the emerging markets for both stocks and currencies. Additionally, short- and long-term indicators are still weak across global bonds, particularly on the long end. As a result, we continue […]

Momentum | May 16, 2017

Posted on May 16, 2017

Our Observations: We think this week is a textbook illustration of a risk on market. The biggest gainers were in the emerging markets and Japan while long-dated bonds in Europe and the U.S. were among the biggest losers. It appears that the fears of a larger sell-off have subsided and many investors are preferring to […]

Volatility | May 4, 2017

Posted on May 4, 2017

Our Observations: Volatility continues to be somewhat muted across all asset classes. The sell-off in stocks over the past few weeks failed to generate high-levels of volatility, which is often a good indicator of extreme investor sentiment. We believe, this could mean that a deeper correction is still pending or that the rebound will be […]

Volatility | April 27, 2017

Posted on April 27, 2017

Our Observations: We think this is an important chart to observe during a sell-off, taking note of extreme levels of volatility as an indication that any sell-off might be reaching an extreme point. As of right now, we see that nearly every segment of the capital market is below the long-term volatility reading. Note that […]

Volatility | April 20, 2017

Posted on April 20, 2017

Our Observations: Nearly every market is experiencing short-term volatility (as measured by 22 days) below long term levels, but some volatilities are creeping slightly higher. We think these volatility levels may indicate an end to the sell-off. If short-term volatility levels were to exceed long term, this would likely indicate that sellers have become overly […]

Correlation | April 19, 2017

Posted on April 19, 2017

Our Observations: The price of the S&P 500 peaked on March 1st and has fallen nearly 3% while the U.S. Dollar has fallen 2% relative other major currencies. We believe this has created some unique inter-market changes, including a sharp rise in the short-term correlations (22-days) of gold and silver. Precious metals tend to be […]