- US Equities Turn Lower. Least favorable equity conditions since 2011.
- Risk is 10% off the high.
- A few weeks ago it appeared that small caps were turning back up. We thought they might lead large caps higher. Instead the large caps have dragged the small caps down.
- Because our long-term measures of Momentum remain high, we expect the US equity markets will rebound and make new highs by year-end.
Copper – follow-up:
- Copper has turned back down. Risk is another 10%. Other industrial metals also weak. Wheat – follow-up:
- Wheat (and agriculture in general) remains most attractive within Commodities. US 10 Year Yield – follow-up:
- Likely to trade between 2.5 – 2.2% over the next month or two. Long-term risk is still 3.00%. Yield Curve – follow up:
- We stand by our May 8 Alert that the Yield Curve is Steepening. Add to positions on weakness.