Equities Turn Lower
– 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.