The Asian markets closed mostly higher (Nikkei +2.99%) and the European markets are trading mostly higher. Today’s economic calendar includes the PMI manufacturing index, ISM mfg index, construction spending and the Fed’s Williams speaks. Later in the week we have the ADP number and then the jobs number on Friday. September is here!
We don’t believe Obama not bombing Syria is going to keep the markets going up; there are just too many tailwinds. The other thing to consider is the S&P has been up ever since Sunday night. That said, the first trading day after Labor Day has the Dow up 13 of the last 17 and the S&P opens the month strong, up 12 of the last 16, but the month tends to close weak due to portfolio restructuring with the S&P being down 12 of the last 18 occasion. There is a lot to keep on your radar over the next several weeks, so it may be a good time to start marking the dates on your calendar.
Our view: You have to take this one piece at a time. During Monday morning’s abbreviated Globex session the ESU closed one handle off its high at 1647.50, up 16.25 handles, with volume of 190k contracts traded. The low was 1639.00 and the high was 1648.50. October crude closed down 84 cents at 106.81. Last night the ESU made a new high by 50 cents at 1649.00. It’s a new month and that could mean new money going into stocks. While we think the S&P can go a bit higher, we also don’t think it can stay up all day; we lean to selling the early rally and buying weakness.
As always, keep an eye on the 10-handle rule and please use stops when trading futures.
- In Asia, 9 out of 11 markets closed higher (Hang Seng +0.99%, Shanghai Comp. +1.18%, Nikkei +2.99%).
- In Europe, stocks are mixed: (DAX -0.34%, FTSE -0.18%)
- Morning headline: Shares, Dollar Rise on Upbeat Data (Reuters)
- Total volume: 1.9 million ESU and 14k SPU (mostly ETFs) traded
- Economic calendar: PMI manufacturing index, ISM mfg index, construction spending, Fed’s Williams speaks
- MrTopStep Closing Print Video