The broad trends for US stocks and bonds still look weak, while several of the usual suspects of late in the upside-outlier category continue to show strength. Let’s take a quick tour, starting with the popular US equities proxy via SPDR S&P 500 (SPY).
As the weekly chart below shows (all charts below are weekly, by the way), US shares are still reflecting a modest downside bias. This trend could easily recover with the right catalyst, although what that might be is open for debate. Meanwhile, the downside has an edge, if only slightly. Perhaps it’s accurate to say that Mr. Market is waiting for more info before committing one way or the other.
There’s no fence-sitting in fixed income, where the descent is (still) dramatically pronounced via Treasuries (IEF).
In search of stocks to counter the negative trend, consumer staples remain on the short list within the US equities space.
Gold-mining stocks (GDX) continue to enjoy a bull run this year, which should come as no surprise, given the 8.5% pop in the price for the underlying precious metal year to date.
The party in pricing the business of extracting raw materials from the ground extends beyond gold: mining stocks generally (PICK) are still a hot investment this year.
Speaking of commodities-related enterprise, stocks in the steel industry (SLX) are having a strong year as well.
US utilities (XLU) are pulling back this week, but that’s expected given the sharp run higher lately.
In the realm of country funds, Indonesia stocks (IDX) continue to post a strong upside profile.
Let’s wrap it up by checking in with various flavors of commodities, starting with a broad measure of the asset class via GCC, which continues to show strength.
Energy shares (XLE) aren’t missing a beat, either.
Finally, commodities in the agricultural space (DBA) continue to cook. A key catalyst: the Ukraine war, of course. Earlier this week, the U.N. Food and Agriculture Organization advised that due to Ukraine-war disruptions global prices for several key food commodities, including grains and vegetable oils, reached their highest levels ever in March, providing a powerful tailwind for DBA. ■