Stocks, Dollar and Gold Will Fluctuate In The Upcoming Week

With stocks approaching all-time highs, will investors be cautious after disappointing employment numbers in August, or will they push stocks higher, focusing on the prospect of strong corporate earnings going forward? While markets expect stocks to fluctuate in the short term, we expect investor focus to neither fixate on valuations nor corporate results after the weather calms down. Despite improving economic data, we've often seen stocks sell on fears that stimulus will expire faster, with weak numbers met with rallies on the view that negative numbers will help extend government and central bank support.

Instability Continues

It is clear that there are large differences in sector performance. Technology is up 0.4% on Friday, while value stocks such as Utilities (-0.8%) and Materials (-0.7%), Finance, Industry and Energy (all -0.6%) underperformed. In other words, investors have exited the value sectors and returned to technology growth stocks. The same is true for indices. The tech-heavy NASDAQ 100 outperformed the +0.4% (same as the SPX tech sector), followed by the NASDAQ Composite with a 0.2% improvement. USD fell below a potential top but found support and ended the day higher. On the other hand, gold rose. Gold, on the other hand, managed to complete a bullish pennant pierced by both the 100 and 200 DMAs after breaking out of a falling channel.       Stocks, Dollar and Gold Will Fluctuate In The Upcoming Week Source: Investing.com