Friday Sept 13 2013
Stocks are advancing setting up another high for November, the opposite of the typical weak fall season.
Bond yields continue to climb reflecting economic strength and an eventual reality that pension liabilities in the US are quite unfunded.
REITs and such are still falling in price.
China is back raising copper and steel prices.
The gold bugs remain convinced this is all a manipulated market and the Evil Empire is driving gold prices down but some way some how that will eventually stop, the Evil Empire disappears and gold goes over $2,000. That story is getting pretty tired.
NDX is well above its longer term moving averages. But MACD turns up at bottom as well as the NASD summation index at top.
Bond Yields
bond yields have soared some 50% in the last year. Traditionalists argue this means a stronger economy. There is a demand for money and rates finally rise. On the other hand, there are huge unfunded liabilities in municipal pension plans suggesting serious debt problems ahead.
China and Freeport McMoran
After all the negative publicity about China, and a drop from 3100 to 1900, China is picking up. At top Freeport McMoran Copper is picking up as well. China has been the driver of commodity prices in the world and so steel and copper are picking up.
Washington REIT WRE
At this price WRE yields 4.9%. With the 30 year yield at 3.8%, that is probably about the risk premium an solid REIT would carry over the thirty year treasury.
Gold
The two month rally looks like a fourth wave. We will stick with our call for a low in gold in October.
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