Weekly Market Review 201216# Stock
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Stock market finished slightly higher this past week as corporate earnings
continued to outpace analysts' estimate. Although we are just two weeks into
the earnings season, investors may turn back their focus into the economic
fundamental ,where initial claims continued to exceed forecasts for 9
consecutive weeks, which are becoming a concern as the next employment data
is approaching. While data remained weak on both jobs and housings front
last week, the Treasury yield curve took a small step back into its initial
rally point back in early March. Next week, the market will be focusing on
the FOMC meeting and the first quarter GDP result, which will be a volatile
week for the bond market.
Technical Highlights:
• Stocks are facing upward pressure from treasury yields as bonds
continued to stay strong.
• The short term equity trend turned bearish as all three major
indices failed to stay above their 50day moving average.
• RSMC rallied strong on both consumer staples and healthcare
sectors, which indicates that money are flowing into the defensive stocks
ahead of the next major trend start.
• Defensive stocks outperformed the market while all other sectors
were holding small gains; Historical returns suggest that defensive stocks
should continue to stay strong forward looking.
• While bonds are enjoying its low rates trading range, the short-
term maturity bonds are suffering ahead of next week FOMC meeting.
read more at...
http://plus.alpbeta.com/report/201216.pdf
continued to outpace analysts' estimate. Although we are just two weeks into
the earnings season, investors may turn back their focus into the economic
fundamental ,where initial claims continued to exceed forecasts for 9
consecutive weeks, which are becoming a concern as the next employment data
is approaching. While data remained weak on both jobs and housings front
last week, the Treasury yield curve took a small step back into its initial
rally point back in early March. Next week, the market will be focusing on
the FOMC meeting and the first quarter GDP result, which will be a volatile
week for the bond market.
Technical Highlights:
• Stocks are facing upward pressure from treasury yields as bonds
continued to stay strong.
• The short term equity trend turned bearish as all three major
indices failed to stay above their 50day moving average.
• RSMC rallied strong on both consumer staples and healthcare
sectors, which indicates that money are flowing into the defensive stocks
ahead of the next major trend start.
• Defensive stocks outperformed the market while all other sectors
were holding small gains; Historical returns suggest that defensive stocks
should continue to stay strong forward looking.
• While bonds are enjoying its low rates trading range, the short-
term maturity bonds are suffering ahead of next week FOMC meeting.
read more at...
http://plus.alpbeta.com/report/201216.pdf