Over the weekend, UBS agreed to buy its rival Credit Suisse for $3.2B as regulators played a key role in the deal to stem contagion across the banking system.
This Week on Wall Street - Week of March 20th
Market Commentary
Over the weekend, UBS agreed to buy its rival Credit Suisse for $3.2B as regulators played a key role in the deal to stem contagion across the banking system. This Wednesday is Fed decision day and investors are betting only on a 0.25% rate hike over these banking worries in the face of stickier inflation.
Onto our models: We are seeing that flip to risk-off areas hold as investors continue to pile into fixed income and safety trades like mega-cap names. Across the treasury curve, we are seeing yields move strongly lower, a positive for bond prices. For yet another week large caps are stronger relative to small caps and growth is edging out value.
Among sectors, we are seeing strength in Technology, Communications, and Staples while Financials, Energy, and Materials are grading out the weakest. Picking names with relative strength within sectors has remained the dominant and most effective strategy.
What is Newton?
r Newton model attempts to determine the highest probability of future price direction by using advanced algorithmic and high-order mathematical techniques on the current market environment to identify trends in underlying security prices. The Newton model scores securities over multiple time periods on a scale of 0-20 with 0 being the worst and 20 being the best possible score. Trend & level both matter.
Economic Releases This Week
Monday: None
Tuesday: Existing Home Sales
Wednesday: Fed Interest Rate Decision
Thursday: Initial & Continuing Jobless Claims, US Current Account, New Home Sales
Friday: Flash PMIs, Durable Goods
Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models, through mathematical algorithms, attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, updated with new data, and can accurately predict future market, industry and sector performance.