January 2010 - The Macro Market Monitor

Explores resource, commodity and currency market influences on stocks and the economy. Each month we separate leaders from laggards, explore how the relationships between various markets are changing and how to profit from it.

  • Are equities getting long in the tooth?

    In This Issue:

    Are equities getting long in the tooth?
    The pros and cons of owning gold
    Bulk dry shipments and rail traffic trending lower but...
    Economic charts show improvement... that is except employment
    Carry trade update
    Chinese stocks still weak
    Market overview
    Interesting Stories...

    Last month, we discussed the importance of the Santa Claus rally in the last five trading days of the year and first two of the New Year. Although the last five days of 2009 were negative for the S&P500, the rally was saved thanks to strong performance in the first two trading days of 2010 helping the index post a net gain of 1.4% over the seven-day period. As we mentioned, a positive Santa rally bodes well for a positive close in 2010.