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John Carter Analysis: Currencies, Bonds, Energy, and Equities

We open the week with an update on currencies, bonds, crude, stock index futures and grains for the shortened holiday week.

In today's video, we start with a look at the Euro which continues its downward spiral. The Japanese Yen likewise continues to sell off, as both of these currencies remain in strong downtrends. Conversely, the US dollar is ready to break out to the upside again. The bond market is benefiting from this strength in the dollar as investors become increasingly confident in US strength. Crude should get weaker as the dollar strengthens, as it is in the US government's interest to pressure Russia via lower oil prices. US equities are exceedingly strong. with the Nasdaq looking ready to test its all-time highs. Large caps are likely to be the primary beneficiaries of a strong dollar, so we advise avoiding the Russell small-cap index. The grains have consolidated after a possible bottom, and soybeans, corn, and wheat are attractive. Live cattle continues to head higher, powered by droughts in the west. Gold is in the midst of a bounce, but with the strong dollar it will be tough to maintain an uptrend.

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