Further to my last Weekly Market Update, this week's update will look at:
- Nine 1-Year Daily thumbnail chartgrids of a variety of markets around the world
- Nine 1-Week percentage gained/lost graphs of these markets (you can see which markets gained/lost this week, and by how much)
- Three Monthly charts of Lumber, Copper, and the Homebuilders ETF (XHB)
In general, it appears that the U.S. $ and 30-Year Bonds are still considered to be the 'safe-haven' plays.
The next three Monthly charts show resistance and support levels on Lumber, Copper, and the Homebuilders ETF (XHB). Lumber and XHB have pulled back somewhat after hitting major resistance levels. Copper has been much weaker and is approaching one major support level at 3.00. If Copper falls and holds below 3.00, it may have a negative impact on Lumber and XHB. And, vice versa, if Lumber and XHB continue to drop, we may see Copper decline below that level down to its next major support level at 2.50.
As an aside, I'd have to say that a good part of the increase that we've seen in new home prices since the 2009 lows is likely due to the increase in the price of Lumber (which has been approaching historical 25-year highs) (and Copper, to some extent, which hit an all-time high in 2011). We'll see if new home prices (and sales) continue to rise if we see a meaningful decline in these three issues, as well as in the Financials Sector.
These three instruments (including Financials) are worth watching going forward, along with Commodities, as I've written about recently here, here, here, and here, since further weakness in these may markedly negatively influence equities. As well, further weakness in European instruments, particularly their banks, along with the BRIC countries/ETF and Emerging Markets ETF, may negatively impact U.S. equity markets.
Enjoy your weekend and good luck next week!