Summer Doldrums Trading Pattern Persists. Waiting for Employment Report.
Choppy Markets Likely to Continue.
The summer doldrums are well on their way with haphazard event driven trading dominating the scene. This is not all that surprising given the slowing of the economy, the rising uncertainty in both domestic U.S. politics and the ongoing global issues. Moreover, the Federal Reserve’s next move continues to add to the general uncertainty.
Still, the S&P 500 remains range bound while the New York Stock Exchange Advance Decline line (NYAD) is within reach of a new high. Both signs are encouraging.
The economic data continues to confuse traders. This morning’s S&P Global U.S. Manufacturing Report came in stronger than expected at 51.3. On the other hand, the ISM Manufacturing PMI came in at 48.7, below expectations. The discrepancy suggests that the economy is basically standing still without much growth.
Bond traders are sensing the flatness of the economy. The U.S. Ten Year Note (TNX) moved back below 4.5 %, while stocks moved lower after opening higher.
Keep reading with a 7-day free trial
Subscribe to Joe Duarte's Smart Money Passport to keep reading this post and get 7 days of free access to the full post archives.