Stocks are churning as a number of crosscurrents are confusing market participants on the future direction of equities. All the major averages finished down on the week after equities tanked on Friday afternoon due to a rebalancing in MSCI indexes.
The big story this week was the rise in interest rates and the debate on why they are moving higher. Here's a daily chart of the Ten Year Treasury Note yield:
Who's right? Before Friday I was willing to actually start considering thesis #3 as Gold has been showing some stealth strength this week. But Friday the yellow metal took another dive after the SPDR Gold Trust Shares ETF (GLD) bounced off Fibonacci resistance on Thursday. Here's the daily chart of GLD. I circled the last two days price action:
NOTHING IN THIS COMMENTARY SHOULD BE CONSTRUED AS AN OFFER OR ADVICE TO BUY OR SELL ANY SECURITIES, OPTIONS, FUTURES OR COMMODITIES. THE OPINIONS ARTICULATED ARE ONLY THIS AUTHOR'S WHO IS NOT A REGISTERED INVESTMENT ADVISOR OR BROKER.