First apologies for no commentary last night and an abbreviated one tonight.
The bond market sold off today while stocks traded in their narrowest range year-to-date. Today’s session rings a bell: “Never short a dull market.” The lack of volatility is not overly surprising given the environment we are in. The Fed will continue to look to end its QE program later this fall and all should go back normal. They hope. We will simply follow our price queues and obey them. We are all waiting on the Jobs report to move stocks. What we are not focusing on is the actual number of the report. The direction the market will take is most important. No surprise here volume was light on the day as we head into a shortened trading session. This uptrend remains in place and we’ll continue to push forward.
One thing I’d like to point out is that the chart still floating around comparing the SPX now to the SPX of 1987 is a misrepresentation. Just a bit of contention here is that for the first half of ’87 the SPX rose 27%. SPX is up about 7% now. This comparison doesn’t hold. Be mindful of what you read.
The lack of intraday volatility is somewhat boring. It is summer time after all. Remember, equities shut down at 1pm tomorrow. Get out and enjoy the holiday weekend.
