SPY Chart done on hourly timeframe. Financial institutions are set to report earnings this week, which means it’s the start of earnings season. Industry leaders such as: JPMorgan Chase, Citigroup, Well Fargo…etc. will update markets on their Q3 performance. Their earnings last quarter surprised investors with better than expected numbers, but analysts are on edge this quarter as weak stock and bond market performance can have an impact on their bottomline. Banks already experienced volatility in the first half of 2023, so investors want to see them at least come in line with expectations to avoid further uncertainty. Other earnings in focus this week are expected from PepsiCo, Delta Airlines, and United Health. All three of these names hold heavy...
SPY Chart done on hourly timeframe. Markets are getting ready to take on a new month after September once again proved to be a very volatile month. The volatility index (VIX) reached a high not seen since May, and SPY closed below 430.00 for the first time since June. This volatility is expected to continue this week as traders face a new uncertainty about the government shutdown. Analysts at Goldman Sachs are estimating that a government shutdown could cost the U.S. 0.2% in GDP growth per week that it is shutdown, plus major reporting agencies like the BEA would no longer report key economic data. The Fed rely on the BEA and BLS to make important monetary policy decisions, so...
SPY Chart done on hourly timeframe. Market volatility continued last week as traders and investors decide which direction to take next. Friday was especially notable for SPY because it recorded the largest volume seen since 6/16/2023, which was a bearish day followed by a full week of downside movement. The Market Volatility Index (VIX) also saw a sharp move up on Friday, likely due to the upcoming Fed’s meeting. The Federal Reserve will be holding its FOMC Policy Meeting on Tuesday and Wednesday to give an update on monetary policy and interest rates. Interest rate decisions are typically based on economic healthy and inflation, but although multiple inflation reports came in higher than expected this month, the probabilities for a...
SPY Chart done on hourly timeframe. A very eventful week is coming up for the markets as investors prepare for the latest inflation readings, Apple’s annual Keynote presentation, and retail sales data. Last week, The Fed’s Beige Book was released and it highlighted The Fed’s willingness to raise rates further if needed, but many members were optimistic that inflation is indeed on the right track of cooling down. The last CPI report showed a slight MoM uptick in inflation from 3.0% to 3.2%, the first uptick since June 2022, but still significantly down from the YoY number of 8.3%. All in all, inflation is moving on the right track, but The Fed are very cautious about taking their foot off...
SPY Chart done on hourly timeframe. Markets wrapped up a volatile August last week and started September with very little trading volume on Friday. Trading tensions were high through the week as mixed economic data poured in and left many questioning the new developments about inflation and the job market. The PCE report showed a YoY increase of 3.3% in inflation, higher than the previous month’s reading at 3%. The Fed’s target inflation reading is 2%, so an increase can result in further and lingering rate hikes. This week, The Fed’s Beige Book will be released and it is expected to detail the current health of the economy according to local and regional leaders. This book is released two weeks...
