Tuesday 28 July 2020

Leaning weak ahead of the fed

US equity indexes closed broadly weak, sp -20pts (0.6%) at 3218. Nasdaq comp' -1.3%. Dow -0.8%. The Transports settled -1.2%.




US equities opened in chop mode, leaning on the weaker side. The SPX saw a morning low of 3221, and then upward into the afternoon to 3243.


It was day'1 of the FOMC. Clearly, no policy change can be expected. However, its probable the CEO of Print Central - Powell, will reiterate his support for further fiscal stimulus. 

Wargames (1982)

No doubt the Fed is ready, willing, and able to buy another $1trn or more of US t-bonds. I have to wonder what the Fed version of the WOPR is projecting for the US election, and into 2021?

The late afternoon saw a moderate cooling wave. Volatility picked up into the close, the VIX settling +2.8% to 25.44. Wednesday afternoon should offer some drama, and who doesn't like that?

A fine end to the day

Next full moon is August 3rd
Extra charts in AH (usually around 5pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
If you value my work, subscribe to my intraday service. 
For details and the latest offers, see: Permabeardoomster.com