Big Picture

Our overall Primary Trend Indicator remains Positive.  Our benchmark $SPX S&P500 Index is trading near all time highs, although it was negative for the week last week as investors gauge earnings reports early in the Q2 earnings reporting season.

Changing Fundamentals

Focus List

 

Global Stock Markets traded mixed in European and Asian sessions, as we enter a big week for corporate earnings.   European markets traded up between 0.25%-0.50% while Asian markets fell on average 1.3% as trade tensions bite and Chinese investors move towards liquidity.  DOW3) Futures point to a mild gain of 50 points while WTI oil prices are up $1 per barrel on increasing tensions in the Straits of Hormuz (Middle East).  Gold prices are stable at $1430 per ounce, Silver prices are rising towards $16.50 up 3% on the day.   Copper prices are flat at $2.74 per pound.

 

SNC Lavalin $SNC.to – The company released news of a major restructuring with intentions to sell its resources unit.  The company also withdrew its forward looking 2019-2020 forecasts.  Investors will want to avoid buying the stock at this stage with all the uncertainty around forward looking guidance.  While a sale of its resources unit would generate capital and support the balance sheet, more important is the guidance withdrawn as it indicates management and company turmoil and directionless vision.  There is a good chance the stock underperforms all year through the end of 2019 as tax loss selling begins to perpetuate in the September to December timeframe.