Saturday 20 June 2020

Weekend update - US equity indexes

It was a somewhat mixed week for US equity indexes, with net weekly changes ranging from +3.7% (Nasdaq comp'), +1.9% (SPX), +1.0% (Dow), +0.9% (NYSE comp'), to -0.1% (Trans).

Lets take our regular look at five of the main US indexes


Nasdaq comp'


NYSE comp'



Four US equity indexes settled net higher for the week, with one net lower.

The Nasdaq lead the way higher, with the Transports fractionally lower.

More broadly, whilst the SPX and Nasdaq comp' are holding above their respective monthly 10MA, the Dow, NYSE comp', and the Transports are below.

Ytd performance:

The Nasdaq comp' is net higher for the year by +10.8%. The SPX is -4.1%, and the Dow -9.3%. The NYSE comp' is -13.9%, with the Transports trailing by -16.7%.

Looking ahead

The schedule is pretty light...


M -
T -
F -


M - Existing home sales
T - New home sales, PMI/ISM manu'
T - Weekly jobs, Q1 GDP (print'3), Durable goods orders, Fed Bal' sheet
F - Pers' income/outlays,

Final note

We're nearly half way through the year. After the Q1/Q2 economic collapse wave, we're in the early phase of an almost equally powerful recovery. Yet... things can't be expected to fully return to what they were.

A significant number will never shop the same... or as much. We have world governments (some knowingly) playing medical theatrics, for all sorts of reasons, not least that of increasing control and monitoring of the unwashed sheep. Naturally, the sheep are content to just play along with whatever they are told is 'in their best interests'.

Despite the ongoing economic recovery, society itself is more stressed and fractured than ever. You only need to spend a few minutes on Twitter to see the increasing divide between the left and right. With an election in November, its only going to worsen.

Ohh, and then there are the little matters of China verses India, North Korea verses the South, Ethiopia verses Egypt, or China against... everyone? Sooner or later... one or more of these geo-political flashpoints will turn hot. War is good for business though, right?

The US equity market has recovered better than any other world market, and that is unquestionably largely due to the Fed. Fund managers and the mainstream cheerleaders owe Powell a great deal indeed.

A June settlement under sp'3K would make things 'interesting' again. Yours truly is more focused on gold, silver, and the related miners, which still appear the most straight forward trade into 2021, and for now... I'll leave it at that.

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Have a good weekend
*the next post on this page will likely appear 5pm EDT on Monday.