pendulum10-year Treasury rates are the lowest they have been in six weeks at about 2.6%.  Before the Fed non-tapering announcement last week, we recommend buying the utility sector via the ETF (XLU).  Utilities are being re-priced higher on declining interest rates.

The internals of the equity market do not point to a general de-risking.  Cyclical sectors continue to perform in line with defensive stocks post the FOMC announcement.  Equities are drifting down to relieve a short-term overbought condition.  With the Delta Market Sentiment Indicator (MSI) bullish, we will look to put new money to work as the pendulum swings more towards short-term oversold.

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