07:18 PM

Markets remain eerily quiet but the dollar might be making moves.  Let's recap:

Currencies

The Kiwi and the Yen were out front this week, rising over 1.5% each.  Gold and silver took a beating once again, down 3.4% and 7% respectively.  The US dollar was one of the stronger performers, up 0.9%.

Asset Classes

Junk bonds and the US dollar performed well this week, rising nearly 1%.  Precious metals performed poorly, down 4.4%, but crude oil was hit even harder and ended the week down 7.5%.

Stock Markets

Chile had a great week, up nearly 4%.  China was hit the hardest, down nearly 4%, and followed by Russia down 3.3%.

As for sectors, utilities put in a great week rising nearly 4% on top of sitting on a 4% yield.  Consumer discretionary had a good week as well, rising 2%.  Financials performed the worst, falling 1.6%.

On Island Sector Signals

Materials, energy, and financials in buy-hedged territory.  All others in buy territory.

General Observations and Forecasts

Another week goes by without much worth commenting on. For whatever reason, trading has been very light and tightly range bound lately.  When we eventually break out of this range, to the upside or down, I expect it to be a major move backed up by heavy volume. 

One thing worth noting however is the recent strength in the dollar.  Action has been choppy lately but progress is finally being made to the upside.  Despite the strengthening dollar, the stock market is holding its ground and finally decoupling itself from the dollar up stocks down pattern we've seen so often over the past few months.  Where the dollar goes from here is a crapshoot, but the relative strength of the stock market is a good sign for the bulls. 

 

For those interested in the full macro view lists, here they are: