Please enable javascript in your browser to view this site!

Bond yield surge helping Financials, while Dollar decline lifting Crude, Metals

Just after mid-day, still seeing widespread weakness in Treasuries and Sov yields around the globe, as Bund yields have ratcheted up to nearly 30bps or a 13% move while Gilt yields at 1.66% and US 10yr Yields have followed suit, with movement up to 1.938.   As might be expected, Financials are showing outperformance, while Energy and Materials are also benefiting given the Declining US Dollar and subsequent bounce in WTI Crude and Metals.. Breadth at this time remains more than 3/1 positive in both volume and in actual Advancing/Declining issues-  charts of relevant movers below

S&P largely range-bound over last few days but no real signs of weakness and still right to be long against 2071 stops

Crude has pressed back up and regained yesterday's highs, and is poised to make new highs in the days ahead, much to Gartman's chagrin.  For now, very difficult to call any sort of top in Crude technically and upside targets lie near 48 in the short run

Exploration and Production remains the leader within Energy, with outperformance by PXD, SM, XEC, CXO, QEP which are all higher by more than 4%.  This continues to be the area to favor within Energy along with buying into the recent consolidation in Oil Service stocks-

This week's Weekly Technical Perspective- available at ,  Highlights the 13 top Energy stocks to consider technically speaking and detailed analysis with targets on each.

Finally, the US Dollar index continues lower for a second straight day after its minor stabilization.  Still difficult to make much of the US Dollar as actually turning higher after the recent trendline breakout, but more sideways in the last couple weeks.  A move back to new lows still looks likely which likely coincides with a final spike higher in the metals into late May