05282021 :: Friday finance

A partial digest

Philip Valenta, MSF
HedgeHound

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Quick wrap for the week ending May 28:

  • Yields finished slightly down after a volatile week.
  • The DXY was flat.
  • Oil rose.
CALL: No change; near to semi-intermediate term, prices could rise further given supply shocks, OPEC+ micromanagement, inflation expectations, "recovery," and more fiscal spending, among other things. Longer term, it's a dying industry.[tracking: XLE, GGN]
  • The S&P Global Clean Energy index finished up for the week.
[tracking: TAN]
  • Gold breached $1,900 before finishing below that level.
CALL: In the very near term, it must be acknowledged that gold has the uncertain potential to rise further as traders who call the competence of the Fed and US Treasury into question drive prices higher. Beyond the very near term, however, no change; the expectation remains for ever-lower valuations moving forward. Looking for an eventual floor around $1,200/oz.[tracking: JDST, GGN, GDX, GLD, SLV, ZSL]
  • Commodities finished up for the week.
  • The St. Louis Fed Financial Stress Index (STLFSI2) for the week ending May 27 ticked up to -0.8527 from -0.8694 the week prior. It remains well below zero, or the stress the economy experiences under “normal financial market conditions.”

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