Market pullback kicked-off as Greece delay on its austerity measure approval. European uncertainty weighted over U.S. treasury, the intermediate-term note yields rose over 15% for the week. Rally in rates benefited commodities price as it was the only sector finished in positive among major benchmarks. Meantime the Russell 2000 gave up the most after five consecutive weeks of rallies, and the S&P500 declined slightly relative to last Friday's close. Market will continue to focus on Europe next week on Greek concern, and the heavy economic data from the U.S. side highlights by Retail sales, Empire State and Housing Market Index will all be the key market movers early next week.
Technical Highlights:
• Commodities rallied along with rates; small cap stocks pullback after extended rally in January.
• Trend remains strong as moving averages are still upward slopping among major equity indices.
• Both defensives and offensives finished mixed; materials, industrials and financials decline followed by earnings rally.
• Historical returns appear to be biased toward offensive stocks forward looking.
• Treasury yields rallied the most on the intermediate-term; the 50day moving average of the 30yr treasury yield is turning positive.
read more at...
Alpbeta: Plus
or
http://plus.alpbeta.com/report/201206.pdf
Technical Highlights:
• Commodities rallied along with rates; small cap stocks pullback after extended rally in January.
• Trend remains strong as moving averages are still upward slopping among major equity indices.
• Both defensives and offensives finished mixed; materials, industrials and financials decline followed by earnings rally.
• Historical returns appear to be biased toward offensive stocks forward looking.
• Treasury yields rallied the most on the intermediate-term; the 50day moving average of the 30yr treasury yield is turning positive.
read more at...
Alpbeta: Plus
or
http://plus.alpbeta.com/report/201206.pdf