Although the SPY eked out a 22 cent gain for an 8-day winning streak it’s overall looking for inspiration. The DIA lost 94 cents, the QQQ gained 47 cents and the IWM slipped 26 cents in a day of pensive price action. Perhaps it’s waiting for the FOMC minutes that will be out Wednesday afternoon but with the fed not planning to raise rates this year it may be difficult to find inspiration there. We may have to sit through light and choppy price action until Friday when the big back kick off the new earnings season.
Futures are pointing to flat open after rallying off the overnight lows. Asian markets closed mixed but modestly higher overnight on the back of rising oil prices. European markets are flat this morning after the president threatened new tariffs due to Airbus subsidies that may be ruled illegal. It’s very easy to become bored and over-trade a dull market. The market has provided some great profits over the last three months don’t give them back as the market wanders looking for inspiration.
On the Calendar
On the Earnings Calendar we have just over 20 companies reporting earnings today. Notable reports include PSMT,SJR & WDFC.
Action Plan
Although the DIA closed down yesterday the SPY managed an 8th straight day of gains with a bullish push in the last 10 minutes of the day closing up 22 cents. The QQQ managed a 47 cent gain while the IWM slipped 26 cents. That’s the price action of a pensive market waiting for some kind of inspiration. Today looks to be another dull day with the US Futures currently flat having rallied off of the overnight lows.
With today’s light economic and earnings calendar we may have to wait until the release of the FOMC minutes on Wednesday afternoon to find a catalyst. However with the FOMC planning no rate increase this year even that news could be uninspiring. With the new concerns raised on earnings growth we may have to wait until Friday’s big bank earnings to find that spark. When the market is dull it very easy for traders to become bored and over-trade a dull market. Trading just to have something to do is bad business. We’ve made great profits in the last few months so let’s not give them back over-trading a dull market.
Trade Wisely,
Doug
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