Dana Lyons – Trades In The US Dollar, Commodities, Bonds, And Which Equity Sectors To Be Long And Short
Dana Lyons, Fund Manager and Editor of the Lyons Share, joins us to discuss the turbulent markets, through the lens of quantitative and technical analysis, and review which sectors look appealing for both long and short strategies.
We start off with the recent jump higher in the US dollar which is up testing resistance at $104, and so Dana has taken profits on that trade in the short-term, but still could see the trend in the dollar heading higher in the medium term. Next we moved over to the commodities and how some have been pressured by the strong dollar, but he is more constructive on the actual commodities than he is on the commodity-related equities in the near-term, where more weakness may be in store.
As for the general equity markets, Dana is still constructive on some of the defense sectors that have recently pulled back like consumer staples, utilities, healthcare, and some commodities, but he isn’t buying at present. He is still bearish on tech, growth, small caps, the Nasdaq, and Europe, but has pulled down some of the shorts they’ve had on, in the event of a near-term bounce, but he would go back to shorting them if they come up to key resistance areas the quantitative readings don’t substantially improve. We wrap up with bonds where Dana remains bearish on the longer term trend, and bullish on rising yields and while they have had good trades in yields to the upside they are scaling them back in the short-term in case they take a pause, but still looking at higher yields to come and lower bond prices in the medium to longer-term.