Our US Financial Market Chart Book and accompanying video is one of 8 reports that we produce for Asbury Research subscribers throughout the month, and one of our most popular.
It is a monthly collection of key charts that focus on a broad array of financial asset prices and related data that collectively convey our best investment ideas for the next one to several months in the US stock market and sectors, US interest rates, the US Dollar, and in economically influential commodities. In the accompanying video, Director of Research John Kosar discusses the implications of each chart and how they are likely to affect the direction of asset prices.
The following are some excerpts from our January 16th report:
U.S. Stocks: “…for the time being, near term momentum remains positive, fear gauges like the VIX and corporate bond spreads are benign, and retracement theory suggests the potential for an additional 3%-5% advance in the major US indexes over the next month or so, before a correction emerges.”
Since that report, the market-leading NASDAQ 100 has risen by 4% as expected. The bellwether S&P 500 has risen by 2% during the same period.
US Interest Rates: “…favorable conditions (exist) for a significant 1st Quarter rebound in mid to long dated US Treasury prices as the yield of the benchmark 10-Year Note eases back toward 2.55%.”
Since that report, the iShares 20+Year Treasury Bond ETF (TLT) has risen as expected, by 4.30 or 4%, while the yield of the 10-Year Treasury Note coincidentally declined by 26 bps to 2.60%.
Gold: “An historic least-hedged extreme by commercial hedgers in COMEX gold represents an aggressive bullish intermediate term bet on higher gold prices by the smart money. Watch for a potential buying opportunity in Barrick Gold (ABX).”
Since our report, ABX rose by $3.24 per share or 18% into the late February highs before pulling back recently.