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ETF Market Vital Signs, May 29: As Wind in Dry Grass

FYI: Stocks in the U.S. ticked lower, while those in China showed some stabilization after a messy decline on Thursday. A second revision for first-quarter U.S. gross domestic product — a broad measure of economic output — wasn’t as bad as anticipated, showing a decline of 0.7%. Oil prices jumped back above $60 a barrel for the first time in over a week. Next week could be a busy one: on tap are elections in Italy, a rate decisions in Europe, a deadline for Greece’s debt payments and a May jobs report in the U.S.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2015/05/29/etf-market-vital-signs-may-29-as-wind-in-dry-grass/tab/print/

Comments

  • edited May 2015
    image
    Despite declines for the day and the week, the major averages posted solid gains for the month: Dow +1%, S&P +1.1%, Nasdaq +2.6%.
    Treasury prices rose as a weak reading on regional factory activity added fuel to typical month-end demand; the 10-year yield fell 3 bps at 2.10%, the lowest in three weeks
    http://seekingalpha.com/news/2552306-stocks-stumble-but-still-positive-for-the-month

    Nat Gas big loser for week.
    Weekly ETF Gainers / Losers
    May 29 2015, 16:17 ET | By: Jignesh Mehta, SA News Editor
    Gainers: TLT +1.94%. VXX +1.82%. UUP +0.71%. OIL +0.57%. KBWD +0.39%. Losers: GAZ -14.89%. UNG -9.05%. EWZ -5.73%. KOL -5.39%. FXI -5.03%.
    http://seekingalpha.com/news/2552276-weekly-etf-gainers-losers

    Monitoring The Trend In Treasury Yields With Moving Averages
    By James Picerno | May 29, 2015 at 08:01 am EDT The Capital Spectator
    The recent stumble in US economic data raises new questions about the timing of the Fed’s plans for raising interest rates. The earliest forecast for the first round of tightening monetary policy has been pushed up to September, although some analysts say that the turning point for rates will come later, perhaps early next year. Much depends on the incoming data, of course. Meantime, what is the Treasury market telling us? One way to cut through the noise in search of signals is to calculate a series of moving averages on Treasury yields. By that standard, the market’s sending mixed messages these days. The 2-year yield—considered to be the most sensitive spot on the yield curve for rate expectations—is trending up. The 5- and 10-year yields, by contrast, continue to trend lower, although there are some clues that suggest that the slide has run its course in longer-term maturities.
    Let’s start with the 2-year Treasury. As the chart shows, there’s a clear upside trend in progress
    By contrast, negative momentum continues to prevail in the 5-year market. Although there have been attempts to revive an upside bias, those rallies have come to naught so far
    The benchmark 10-year yield tells a similar story. There have been several rallies, but so far the downtrend hasn’t been broken. But perhaps that’s about to change. Note that the 50-day E M A for the 10-year yield ticked above the 100-day E M A in the last two days for the first time in more than a year.
    With Charts
    http://www.capitalspectator.com/monitoring-the-trend-in-treasury-yields-with-moving-averages/
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