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%.

sp'daily5

VIX'daily3

Summary

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.

Meanwhile...

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?
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A fine end to the day

Next full moon is August 3rd

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Goodnight from London
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A Golden start to the week

US equity indexes closed broadly positive, sp +23pts (0.7%) at 3239. Nasdaq comp' +1.7%. Dow +0.4%. The Transports settled +0.9%.

sp'daily5

VIX'daily3

Summary

US equities opened in chop mode, but did claw upward into the late afternoon. Volatility was itself subdued, the VIX settling -4.3% to 24.74. 


Meanwhile...

Gold broke above the Sept'2011 historic high of $1923s, printing the $1941s. Today's cooler dollar in the DXY 93s certainly helped.

Gold, monthly'3

Psy'2K could clearly be seen before end month. Next big target is the 2400/500 zone.

Your views...

88.2% of you expect Gold to break above 2K before year end. With gold already breaking a new historic high, yours truly is open to 2400/500 before year end.

Around a third of you expect Silver to max out within the 25/29s.

Its not surprising to see Barrick Gold as the leader... and the leader is it, if not in price (still to break new historic highs), but underlying fundamentals.

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Goodnight from London
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Weekend update - US equity indexes

It was a bearish week for most US equity indexes, with net weekly changes ranging from -1.7% (Transports), -1.3% (Nasdaq comp'), -0.8% (Dow), -0.3% (SPX), to +0.5% (NYSE comp').


Lets take our regular look at five of the main US indexes

sp'500

Nasdaq comp'

Dow

NYSE comp'

Trans

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Summary

Four US equity indexes settled net lower for the week, with one net higher.

The Transports lead the way lower, with the NYSE comp' resilient.

The Nasdaq comp' broke a new historic high.

More broadly, all five US equity indexes are currently trading above their respective monthly 10MA.
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Looking ahead

A very busy week is ahead, with the first look at Q2 GDP, and another truck load of earnings. We can expect further Corona related headlines, especially in terms of the vaccine candidates. Its also likely we'll see some further 'developments' in US/China relations.

Earnings:

M - HAS, NXPI,

T - PFE, MCD, MMM, RTX, CNC, MO, JBLU, HOG, AMD, V, EBAY, SBUX, FEYE, AKAM, AMGN, CAR

W - SHOP, BA, GE, SPOT, ANTM, GM, APRN, PYPL, QCOM, TDOC, NOW, URI

T - UPS, MA, AZN, PG, KHC, BUD, CLF, LLY, NEM, CMCSA, AMZN, FB, AAPL, F, GOOGL, GILD, MGM, EA, XLNX

F - XOM, ABBV, PINS, CAT, MRK, CVX, UAA
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Econ-data:

M - Durable Goods Orders
T - Case-Shiller HPI, Consumer con', Richmond Fed manu'
W - Intl' trade, pending home sales, EIA Pet'

FOMC announcement (2pm), with Powell (2.30pm). No change in rates or the ongoing QE program can be expected. Its likely that Powell will again state the Fed's support for further fiscal stimulus, and that the fed will do 'whatever is necessary' to bolster the US economy (or rather... the equity market).

T - Weekly jobs, Q2 GDP (print'1),
F - Pers' income/outlays, Chicago PMI, consumer sent'

*As Friday will be end month, expect considerably higher volume.
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Have a good weekend
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*the next post on this page will likely appear 5pm EDT on Monday.