Friday, March 4, 2022

Finspiration Australia. U.S. stocks down, safe havens up. Sat. 5/4/22

 Yesterday in Australia.

Yesterday, XJO was down -0.57%.



Overnight.


Dow Jones -0.53%.  SP500 -0.79%.  Nasdaq -1.66%.  Small Caps -1.36%.  Banks -3.41%.

Huge falls overnight in Europe with the STOXX600 down -3.56%.

SP500.


Short-term, SP500 remains in non-trending, consolidation mode.  Longer term, SP500 remains bearish.  Wait.


Commodities.


Commodities Index +4.21%.  Energy +6.73%.  Base Metals +2.2%.  Gold +1.5%.

The current exponential rise in Energy and Base Metals is unsustainable.  Where it will end is unknown, but it will end badly.


Safe Havens:  Bonds and Gold.








20-Year Treasuries (TLT) up strongly +1.73%, but it appears to be in a short-term counter-trend rally.  Overall it appears to be bearish - probably because of the threat of the Federal Reserve raising interest rates.

Gold  is in a strong up-trend +1.59%, and shows no signs yet of reversing to the downside.

While the Ukraine situation dictates uncertainty in the markets, Bonds and Gold will probably continue higher.

NY Advances-Declines Cumulative.



New York NH-NL Cumulative peaked in early November.  The negative divergence from the SP500 Nov.-Jan. predicted the decline in the New York market.  Until this indicator returns to an up-trend, it's best to stay defensive.

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