DailyWatch 10272016

October 27, 2016 @ 8:43 am

Today’s Markets

In Asia, Japan -0.3% to 17336. Hong Kong -0.8% to 23132. China -0.1% to 3112. India +0.3% to 27915.
In Europe, at midday, London -0.1%. Paris -0.3%. Frankfurt -0.1%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude +0.5% to $49.44. Gold +0.4% to $1271.
Ten-year Treasury Yield +4 bps to 1.83%

Today’s Economic Calendar

8:30 Durable Goods
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $28B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet


Market Summary

The S&P futures are trading at 2140 in morning trading.

The S&P has been in a range since September. We have traded between 2100 and 2191 with most of the time trading an even tighter range of 2120 -2170.

I would expect to see some fire works by this time next week. The Vix futures is a  critical point. one way or another i would expect to see a decent size move breaking this market out one way or the other in the next week. I learned early on to follow the bond market. Bonds continue to decline therfore i am looking for equities to decline. We are seeing strength in the dollar which should cause headwinds for oil and gold.

I remain longer term with our previous calls. Short oil under 50. Stay short gold. You can use below 1270 as entry to get short if you do not have a position.

Long : Vix and Dollar

Short : S&P,Gold and Crude and bonds

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