Friday, May 21, 2021

Morning Note: Operative Words

This morning's schedule has me keeping our opening note short and sweet. This week's meaningful macro update will arrive in your inbox later today.

If this morning's opening rally holds, U.S. equities -- after a rough start -- will eke out a gain for the week. Commodities on the other hand are (save for oil) following through this morning on what I -- per my recent video messaging -- view (for now) as some necessary (healthy) corrective action. 

Asian equities leaned green overnight, with 10 of the 16 markets we track closing higher.

Europe's having a nice go of it this morning, with all but 2 of the 19 bourses we follow in the green as I type.

U.S. major averages are up across the board: Dow up 307 points (0.90%), SP500 up 0.67%, SP500 Equal Weight up 0.89%, Nasdaq 100 up 0.42%, Nasdaq comp up 0.52%, Russell 2000 up 1.27%.

The VIX (SP500 implied volatility) is down 3.10%, VXN (Nasdaq 100 i.v.) is down 1.82%.

Oil futures are up 2.66%, gold's down 0.16%, silver's down 0.47%, copper futures are down 1.05% and the ag complex is down 0.57%.

The 10-year treasury is up (yield down) and the dollar is up 0.21%.

Led by ALB (lithium miner), AT&T, bank stocks, water stocks and oil services stocks -- but dragged by MP (rare earth miner), emerging market equities, gold miners, silver and ag commodities -- our core mix is up 0.32% to start the day.


My closing comment at the end of virtually every client review meeting of late is:
"Our goal these days is to simply, and smartly, compound returns at a decent rate while killing ourselves to mitigate big downside risk."
Operative words there being "these days" and "mitigate risk."


Have a great day!
Marty




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