Dow Theory: Transports Sputter, Industrials Power On
What’s in Today’s Report: Dow Theory: Transports Sputter, Industrials Power On
Corporate earnings growth and interest rate movements are likely to more directly impact equity prices.
The stock market fallout of shifting expectations for November’s election will likely be “very short term,” Sevens Report founder Tom Essaye wrote to clients, as more directly impactful developments like corporate earnings growth and interest rate movements are likely to more directly impact equity prices.
This political shake-up shouldn’t materially alter the direction of the markets
“This political shake-up shouldn’t materially alter the direction of the markets,” said Tom Essaye at The Sevens Report. “The ultimate direction of the S&P 500 will still be determined by economic growth.”
Explaining My Market View More Clearly
What’s in Today’s Report: Explaining My Market View More Clearly – Subscriber Q&A
Massive rotation from tech and tech related sectors
Bottom line, this massive rotation from tech and tech related sectors was caused primarily by investors positioning for a rate cutting cycle and secondarily by anticipation for a Trump administration and negative tech news,” writes Sevens Report’s Tom Essaye.
This generally isn’t great for markets.
The 10-year Treasury constant maturity minus the 2-year (aka 10s-2s), currently around -0.26, is moving in a positive direction, Sevens Report founder Tom Essaye said. This generally isn’t great for markets.
Is the Yen Carry Trade Become A Headwind on Markets?
/in Investing, Reports/by Tom EssayeWhat’s in Today’s Report: Is the Yen Carry Trade Become A Headwind on Markets?