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THE REAPER MARKET COMMENTS
Prepared by R. E. McMaster, Jr.
General Market Comments
December T-bonds have stalled at 116 resistance. Stocks have turned sluggish; the Dow reversed at 8000. December U.S. Dollar Index has fallen below 97 support. The European currencies have strengthened. The Japanese Yen has stabilized somewhat. The key Asian currencies–Australian Dollar, New Zealand Dollar, Singapore Dollar–are bottoming against the U.S. Dollar. Energy has bottomed. November CRIB Index is bullish. Goldman-Sachs Cash Commodity Index has turned quite bullish. Straws of change in the wind? Utilities and REITs are overbought and overpursued by investors now. Consider taking some profits. The precious metals–gold and silver–and the associated mining stocks are under accumulation. Commodities are firming. Even the two commodity currencies–the Canadian Dollar and Australian Dollar–are stronger against the U.S. Buck. Moreover, we're moving into seasonal lows for corn and soybeans in the midst of an El Nino which seems destined to cause global havoc. Pacific Ocean temperatures in El Nino are ten degrees warmer than normal! The temperature is rising in the markets, too, as things cool down this fall.
September 25, 1997R. E. McMaster, Jr., Editor
The Reaper
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Copyright 1997, by Consensus Inc. All American and Pan American rights Reserved. editor@consensus-inc.com
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