Good morning,
Below are the latest 3 From The MMP. The Monday Morning Playbook (MMP) is the flagship publication of Beat the Bench and now includes 2 ETF models, in addition to more charts, analysis, and actionable takeaways.
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It’s all about rates
Rates across the curve broke out higher last week and it is easy to see that the risk is to the upside here. Thankfully, all the above tenors stalled at other key resistance points on Friday following the jobs report. I’m most closely watching the 30-year, as a breakout above 4.1% would suggest new cycle highs are likely for all.
Cover your eyes before you look overseas
It isn’t just interest rates in the US that are on the rise again. Above are the French and German 10-year yields which are above rising 200-day moving averages and breaking out to multi-month highs. If these were stocks, we would be buying them.
Short-term breakout for crude oil
Crude oil broke out of a two-month consolidation on Friday in a decisive way. I’ve been talking about subtle improvements in the space and this is one more. The measured target suggests $80/bbl. is a possibility over the coming weeks.
That’s it for this week, thanks for reading! If you like my work, please consider upgrading to a paid membership and tell your friends about 3 From The MMP.
Scott
Scott Brown, CMT
Founder and Chief Investment Strategist, Beat The Bench LLC