Volatility has been almost non existent over the last few days as no one is willing to make a bet in front of this week's Fed minutes. Rumors about rate hikes are back, but we believe there is almost no possibility. Bonds, which have been falling have been essentially raising rates little, by little every day for a while now. The Fed is certainly not going to exacerbate the situation.
We are entering the end of the month window and stocks have been holding up well, which is bullish. The IWM continues to trade near highs, but we wouldn't bet on a breakout there just yet.
Meanwhile, money continues to flow into the industrials indicating that we may be on the verge of a reacceleration of capital spending. Growing economies mean growing markets, so the outlook continues to improve here.
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