Weekly Market Outlook February 1, 2015

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Earlier this year, we wrote that the expectation of a strong dollar could result in unpleasant surprises, and this happened last week. The S&P 500 lost 2.77% and is down 3.10% YTD. Last Friday, the S&P 500 volume was approximately 39% higher than the average over the past three months. Strikingly, intraday the S&P 500 lost ground with limited turnover particularly during the last 1.5 hours. The result is a distorted image of the market, which might be caused by high-frequency traders. The overall picture can be seen as weak, but not yet alarming. Because of the increased volatility, careful monitoring will continue in 2015.
 
Besides the business figures, it is about the macro data from the U.S. this coming week. On Monday, the focus will be on the ISM Manufacturing Index for January, with a consensus of 54.5, down from 55.5 in December. If this figure were to be even weaker, then extra defensive actions for the short-term would seem appropriate. Additionally, important figures on the U.S. employment will be published.


This material is communicated on February 1, 2015 by Thirteen Asset Management AG, Rietbrunnen 20, 8808 Pfäffikon SZ, Switzerland. This material is for information purposes only and is not intended to be a solicitation or invitation to invest. Any organizations or products described in this material are mentioned for reference purposes only. This material is intended only for investment professionals and professional clients and must not be relied upon by any other person. It is proprietary information of Thirteen Asset Management AG and may not be reproduced or otherwise disseminated in whole or in part without prior consent from Thirteen Asset Management AG. Alternative investments can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of trading performance and past or projected performance is not a reliable indicator of future performance. We recommend to consult your bank, investment and/of tax adviser.