Welcome to the asklim Futures Markets Outlook. In the short video below Iwill take a close look and technical Anlaysis on the main Futures Markets. Below the video is my round up of the Markets from the last week.
The Stock market was little changed this week, disguising major swings in individual stocks. An early-week rally stalled, however, bringing a minor pullback. Indexes were mixed, with the NASDAQ taking the worst of it. Major earnings misses in NFLX, GOOGL, MSFT, and more, weighed on that tech-laden index, sending it down about 2% on the week. As typical of a healthy bull market, rotation kept the stock market from giving much ground. As money flowed out of techland, and the safe haven type consumer and utility stocks, it moved into energy, material and industrials. So while bulls might have taken a pause, there is little that indicates overall damage to this stock market run.
Late in the week, Japan helped the equity markets as they throw everything they have left at stimulating its broken economy. With the failure of “Abenomics”, they now say they will go to a negative interest rate on loans. That means they will pay, what they deem as major companies in “growth areas,” to borrow money. Also, they will now double their buying of stock ETFs. How outrageous is that?!? It will cause massive malinvestment as companies expand when the consumer has no appetite or ability to buy the products produced. CRAZY! With their massive debt/GDP, that’s an implosion ready to happen. How do you say Keynesianism in Japanese?
The Japan news sent the yen down sharply, as we expected, and lifted the dollar. In the normal domino effect, gold also fell, dragging down a very strong silver market. The oil market, however remained rock solid, despite the failure, in Doha, of producing nations to freeze production. Sentiment in the energy market has greatly improved, helped by the IEA saying production in the non-OPEC area is about to fall, thus helping rebalance the big oversupply in oil we have seen for many months.
Where to now for the markets? To hear more commentary, many charts, viewer emails and Slim’s Short-term view, be sure to watch the video at the top of this post, Futures Markets Outlook