Trans-Pacific Partnership Guiding Countries’ Fortunes
By Laif Meidell, CMT, president of American Wealth Management, and portfolio manager of the AdvisorShares Meidell Tactical Advantage ETF (MATH)
The bulls emerged victorious on Wednesday after a volatile session, where the major market averages went from positive to negative and back to positive by the close of trading. The major market averages all finished in the green with the Standard & Poor’s 500 gaining 0.80 percent and the Nasdaq Composite up 0.90 percent on the day. The S&P 500 traded briefly above its 50-day moving average at 1,997 in the first hour of trading, but wasn’t able to retake that level later in the day. Technically speaking, investors watch moving averages because they can appear to act as resistance levels or as support levels for price, which is another way of noticing at what price investors appear more inclined to sell or buy.
The Energy Information Administration petroleum status report indicated a large 3.1 million-barrel build in weekly oil inventories on Wednesday. This sent the S&P GSCI Crude Oil index lower by 1.24 percent on the day. A weekly increase in oil inventories is a reflection of falling demand by oil refineries, which are now operating only at 87.5 percent of capacity. Consumers don’t appear to be driving as much lately, with gasoline stocks rising 1.9 million barrels this week, giving refineries less reason to convert as much oil into gasoline. Although the Dow Jones U.S. Energy index still gained 1.26 percent on Wednesday, the index closed well off its high of the day following the news.
With the Trans-Pacific Partnership in the news lately and getting traction in the Asia Pacific region and the U.S., some investors seem to be pre-positioning their investment dollars for the economic boost some countries are expected to receive. This week’s top-performing countries are a reflection of that belief. The top-performing country for the week is Indonesia, with the Market Vectors Indonesia index up 15.89 percent over the past five trading days, followed by the Market Vectors Vietnam index gaining 11.82 percent over the same period.
This commentary originally published in the Reno Gazette-Journal. Performance numbers used in this article were obtained through eSignal and are not guaranteed to be accurate.