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Is CANE Able?
March 13th, 2016
Keith Schneider
CEO, MarketGauge.com | |  Confounding many, Equities continued its rise after a very shaky start to the year. In one of the most hated and under participated rallies in recent memory, the S& P 500 climbed to its highest price YTD and is now down only a mere .65 %. The NASDQ 100 last year’s standout equity index is down almost 5.0%. The S&P 500 has now entered an Accumulation phase, closing just over its 200 day moving average. Friday’s rally was on rather meek volume and since the rally off the February low, there has only a single day where up volume has exceeded its 50-day average. This is all on the heels of Draghi (ECB Head) announcing an unheard of easing by dropping rates to a negative .4% and will be buying corporate debt which undoubtedly fueled Fridays rally in Equities worldwide. The ECB will be buying everything in sight to stem deflation. It seems no matter what the ECB tries, Eurozone is still suffering from what has troubled Tom Brady. Unemployment in Portugal has reached 30% among its youth and with those stats regardless of rates charged to Banks by the ECB, it’s going to be quite difficult to get demand up. The Euro soared, up 2% after Draghi hinted that this measures are all that’s needed so if his tactics work this time we might have seen the lows in rates. And the Euro as well. Staring down this rally, safe havens such as utilities and gold remain extremely firm. Commodities which have for so long has been abandoned despite the sweet allure of central bank easing seems to finally be getting a taste of the sweet stuff, led by CANE, the well-designed sugar ETF which closed on new recent highs, up now almost 20% since the rally in equities started. This week is FED week so stay tuned. Click here for this weeks video. | |
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