The market will face a couple of potential downside catalysts over the next ~2 months. The first catalyst is the September 16 FOMC meeting, where participants will look to see if the Fed supports its new policy framework with more stimulus. The second obvious catalyst
The market will face a couple of potential downside catalysts over the next ~2 months. The first catalyst is the September 16 FOMC meeting, where participants will look to see if the Fed supports its new policy framework with more stimulus. The second obvious catalyst
Rising bond yields have the potential to create problems for momentum sectors like Tech where positioning has become crowded. Tech has an historical negative correlation with interest rates.
The ~$3T Cares Act was largely financed by the issuance of T-bills, which means the amount of debt maturing within a year is larger than the Treasury’s stated objectives. In fact, the Treasury’s August refunding announcement indicated that duration supply of 10-year bond equivalence is
US August flash PMIs extended further into expansion territory with manufacturing coming in at 53.6 vs consensus for 52, and services improving to 54.8 from 50 last month and beating consensus for 51. Today’s better than expected US August PMI data and improving coronavirus trends
At new highs, the S&P 500 may not face overhead supply but technical resistance still exists. At the moment, the SPX is trading above easy-to-identify resistance at ~3450, but the close is far more important. If the SPX closes above 3450, we’ll turn our attention
US August flash PMIs extended further into expansion territory with manufacturing coming in at 53.6 vs consensus for 52, and services improving to 54.8 from 50 last month and beating consensus for 51. Today’s better than expected US August PMI data and improving coronavirus trends
US August flash PMIs extended further into expansion territory with manufacturing coming in at 53.6 vs consensus for 52, and services improving to 54.8 from 50 last month and beating consensus for 51. Today’s better than expected US August PMI data and improving coronavirus trends
The S&P 500 faded from intraday highs following the release of July FOMC meeting minutes, but there was nothing in the report to change near-term monetary policy expectations. The statement that weighed on markets was probably: “the ongoing public health crisis would weigh heavily on
Yesterday’s record high close in the SPX was by the thinnest of margins and more strength is required to clear technical resistance. If the SPX manages to clear technical resistance, the rule of thumb on new highs usually assigns ~10% upside.
