Stocks Rallied in Broad-based Advance

Stocks Rallied in Broad-based Advance

$DIA, $SPY, $QQQ, $RUTX, $VXX

This week’s trade has been headlined by the yield-curve inversion theory, where the yield of shorter-dated debt rises above its longer-term counterpart.

On Wednesday, the yield 10-yr T-Note rate briefly fell below the 2-year T-Note a condition that has sometimes been a recession indicator.

The degree to which investors have crowded into the perceived safety of government debt has driven yields across the globe into ultra-low and negative levels, a dynamic that has also helped to keep US government bond yields pinned lower.

Some $15-T in government debt now carries a yield of less than 0%, another unusual condition in markets that has helped to drive investors into risky assets including stocks for lack of better-yielding assets.

The average dividend yield on S&P 500 index stocks is around 2.0% currently.

Despite the rally in stocks Friday, demand for US Treasuries held firm amid lingering growth concerns. The 2-yr yield declined 2 bpts to 1.47%, and the 10-yr yield increased 1 bpt to 1.54%.

.DXY finished flat to unchanged at 98.18. WTI Crude Oil increased 0.5% to $54.89 bbl and US gold futures finished -0.1% to $1508.60 oz.

There really is no answer as to the Why of this as the US economy is solid, and there is no recession in sight, Key: Tune out the Noise.

Friday, the major US stock market indexes finished at:DJIA +306.62 at 25885.99, NAS Comp +129.38 at 7896.01, S&P 500 +41.08 at 2888.68

Volume: Trade on the NYSE came in at 861-M/shares exchanged

  • NAS Comp +19.0% YTD
  • S&P 500 +15.2% YTD
  • DJIA +11.0% YTD
  • Russell 2000 +10.8% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes for the week ended 16 August 2019 is Neutral – Bullish

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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