Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
As no budget resolution came to pass this weekend (surprise surprise) futures are solidly down in the U.S. and most world markets are following suit. Even before this morning’s drop the S&P 500 had dropped about 2% straight in a slow steady drip since a week ago Wednesday when euphoria was at its highest post Fed announcement. It has been a strange month – the S&P 500 was up 11 of 12 days in a row up, through that Wednesday and barring a big reversal later today will be down 7 of 8 sessions. Technically we have a bearish MACD crossover in the S&P 500 here.
Bigger picture, the S&P 500 has moved a lot since early July but with an open in the 1670s will have gone almost nowhere in the past 3 months
The NASDAQ has performed much better of late (as has the Russell 2000) so certainly an interesting divergence in the short term charts.
All in all, we’ve seen this game before – there will be a lot of herky jerky movements to this or that news break or politician comment. Then at some day in the future the politicians will have kicked the can (and solved nothing) but the market will skyrocket as that uncertainty is now off the table. Rinse ,wash, repeat.
Aside from those hijinks we have ISM reports Tuesday and Thursday and the employment data Friday. If there is no government one wonders if there will be a jobs report. Hmm…
But all eyes will focus on D.C. this week unfortunately.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/index.php/the-fund/holdings
