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TheStreet Open House

Global Macro: Data Crunch: Auto Sales a Strong Start

Stock quotes in this article: GM, SHY, TLT, GLD

NEW YORK ( TheStreet) -- As economic releases pick up in quantity, jobs data and data regarding economic output are at the forefront of investors' minds.

On Wednesday, August auto sales were released with the strongest reading since October 2007, a sign of a rebound in consumer health.

The first chart below is of General Motors Co. (GM), a company that has worked tirelessly to recover from the recession.

Improved auto data may signal the need for less intervention from the Federal Reserve, which could lead to a short-term negative shock to share prices, but long-term growth should push GM to record highs.

The next chart is of iShares Barclays 1-3 Year Treasury Bond (SHY) over iShares Barclays 20+ Year Treasury Bond (TLT). This pair measures the Treasury yield curve.

If the government lessens its planned intervention into Syria, the fear that drove investors into Treasuries should diminish. Likewise, better-than-expected economic results will lead the market to believe that the Fed will begin to taper bond purchases this month. And so the yield curve should continue its upward trend, unless expectations drastically change.

Going back to the fear that drove investors into safer assets in the first place, it looks as if gold, which began its move higher in early July, has yet to break its trend support.

The chart below is of SPDR Gold Shares (GLD). Although the conflict in Syria brought the price of gold quickly up to a resistance level, the precious metal will likely need a catalyst to break higher. The catalyst could come in the form of a major development in North Korea or some event that causes a fall in the price of the U.S. dollar.

With rates continuing to rise, as seen in the chart above and with less geopolitical risk, gold may be in store for a correction lower.

At the time of publication the author had no position in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Andrew Sachais' focus is on analyzing markets with global macro-based strategies. Sachais is a chief investment strategist and portfolio manager at the start-up fund, Satch Kapital Investments. The fund uses ETF's traded on the U.S. stock market to gain exposure to both domestic and foreign assets. His strategy takes into consideration global equity, commodity, currency and debt markets. Sachais is a graduate of Georgetown University, where he earned a degree in Economics.

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