Monday was a typical low-volume chop fest, as the dollar popped higher along with bond yields as we slid toward the holiday shutdown.  With a flurry of earnings reports this morning, we may get a bit more activity but expect volume to diminish quickly.   It can be very easy to overtrade out of boredom, so be careful planning your trades and keep in mind a low-volume condition can produce a lot of head-fake entry signals that just as quickly disappear.  Also, expect sensitivity to the news cycle as automated institutional algorithms churn prices to generate fees.

While we slept, Asian markets traded mixed as China held benchmark lending rates steady as pandemic concerns rose.  Across the pond, European markets trade flat to bullish this morning as they ponder possible Chinese restrictions and the economic outlook.  However, with a flurry of retail earnings reports and a very light economic calendar plan for a surge of activity in the morning session, volumes quickly decline, and likely price action becoming choppy here in the U.S.

Economic Calendar

Earnings Calendar

Due to the shortened holiday week, today is our biggest day for earnings reports, with a heavy concentration on retail.  Notable reports include ANF, AEO, ADI, ADSK, BBY, BIDU, BURL, CSIQ, DKS, DLTR, GES, HPQ, JACK, MDT, JWN, VIPS, VMW, & WMG.

Trade Wisely,

Doug