With bond markets closed, no earnings or economic events, the start fo the supreme court hearings, and Stimulus talks at an impasse, futures point to a flat open. That’s something we’ve not seen in quite a long time.  The bulls remain in control, but that control depends heavily on the hopes of the stimulus deal.  The President raised his offer to 1.8 Trillion, and now both sides of the aisle are unhappy with the proposal.  Traders should prepare for significant news-driven volatility amidst a week of substantial distractions.

Asian markets closed the day mixed with the HIS leaping higher by 2.2%.  European markets hold modest gains across the board this morning while U.S. Futures remain flat and choppy with the bond markets closed for Columbus Day.

Economic Calendar

Earnings Calendar

We have no confirmed earnings reports on this Columbus day Monday.

News & Technicals’

The President has upped his offer for Stimulus to 1.8 Trillion and now has opposition on both sides of the aisle.  The D’s say it’s not enough, and the R’s are upset because the cost is much higher than they are willing to pass.  With the beginning of the Amy Coney Barrett’s supreme court confirmation hearings, I suspect the distraction will take the focus off getting a stimulus bill completed.  Although the markets are open today, the bond markets are closed today due to Columbus Day’s banking holiday.  We will have a few more distractions this week with the Tuesday launch event of this year’s iPhone lineup.  A Morgan Stanley analyst wrote this fall’s launch would be the most significant iPhone event in years.  We will also have a massive focus on online shopping events with Amazon’s Prime 2-day sales event may other online competitors tagging along with sales events of their own. 

Last week was all about the bulls pushing the markets up in hopes of more Stimulus.  That created tremendous price volatility as the Congress and the President waged a political battle making headlines that would swing market emotions violently.  Unfortunately, with no progress over the weekend and Speaker Pelosi quoted saying that talks “remain at an Impasse,” we should plan for the market emotion to continue spilling out with the news cycle out of D.C.  With banks closed today, and the beginning of the supreme court hearings, it would not be a surprise to see a day of algo-driven choppiness.  Futures suggest a flat open with nothing on the earnings or economic calendar to inspire the bulls or the bears; we could have the quietest market open in weeks. 

Trade Wisley,

Doug