What a week

This has been quite a week in the Nort American equity markts. The Dow and the S&P 500 are now back to their 200 day moving averages and this support level must hold or it could get very ugly.

The NASDAQ has already broken below the 200 day MA and looks like it could go a bit lower in the short term. This market has not looked very invitng for some time now and I would stay away.

The TSX compositre has been able to remain above the 200 day MA and still appears to have the potential to be the best performing market again this year.

There has been an increase in concern regarding inflation and the ECB has increased interest rates by 0.25% as a result. The Federal Reserve appears to be indicating that heigthened inflation pressure will force them to increase rates again this month. The anticipation of a rate hike has now pushed the yield curve into an inversion in the 2-10 year part of the curve this is signalling a recession in the US economy sometime late this year or early next.

Stay away from from companies that are dependednt on consumer spending and focus on the commodity producers ove the next few months, over weight oil and gas, base metals and precious metal stocks.