Sep 26, 2018
It’s a relatively quiet morning for US equities ahead of this afternoon’s expected rate hike from the FOMC. US futures are slightly higher but have been fading. In trade news, there is some optimism out there on reports that China plans to cut tariffs on up to 1,600 items beginning on November 1st. Read all about today’s news and events in our Morning Lineup below.
As mentioned above, today is also a Fed Day, and with that, we published our regular preview of the report in a B.I.G. Tips report yesterday. One chart we would like to highlight is a composite intraday chart of the S&P 500 on rate hike days over the last year. There have been 3 of them since last September, and the pattern that the S&P has taken on these days has been noteworthy.
As shown, the S&P has gotten off to a good start in the morning of these Fed Days, but afternoon trading has been a different story. After a drift lower from noon to 1:30 PM ET, we’ve seen the S&P catch a bid into the 2 PM rate announcement. From 2 PM to the close, however, we’ve seen the equity market sell-off pretty sharply to take the index into the red by 20+ basis points by the close of trading. It’s a small sample size, but something to keep in mind especially with futures already off their highs.
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Sep 25, 2018
Yesterday marked the end of an impressive streak for the S&P 500 Industrials sector where it had previously closed higher than it opened for 15 consecutive trading days! As shown in the chart below, before the current streak, the prior record for the longest stretch of daily closes above the open was nine trading days. That happened three prior times (April 2004, September 2009, and January 2018). Following those three periods, the sector’s performance was mixed to poor. One month after the day when the streak was broken, the sector was down all three times for an average decline of 2.5%. Not a major decline, but not positive either.
Start a two-week free trial to Bespoke Premium to see today’s full Morning Lineup report. You’ll receive it in your inbox each morning an hour before the open to get your trading day started.
Sep 24, 2018
US equities look like they are going to kick off the week on a down note today as the latest tit for tat trade spat between the US and China continues. Both Chinese and Japanese equities were closed for holidays overnight, and European equities are broadly (but not sharply) lower to kick off the week.
As noted in last week’s Bespoke Report, the US stock market is coming off a strong period for the bulls as the S&P 500 has rallied in eight of the last ten sessions completing what was a textbook technical pattern breaking out, testing the original breakout point, and then making a run for new highs.
Start a two-week free trial to Bespoke Premium to see today’s full Morning Lineup report. You’ll receive it in your inbox each morning an hour before the open to get your trading day started.
Sep 24, 2018
US equities look like they are going to kick off the week on a down note today as the latest tit for tat trade spat between the US and China continues. Both Chinese and Japanese equities were closed for holidays overnight, and European equities are broadly (but not sharply) lower to kick off the week.
As noted in last week’s Bespoke Report, the US stock market is coming off a strong period for the bulls as the S&P 500 has rallied in eight of the last ten sessions completing what was a textbook technical pattern breaking out, testing the original breakout point, and then making a run for new highs.
Start a two-week free trial to Bespoke Premium to see today’s full Morning Lineup report. You’ll receive it in your inbox each morning an hour before the open to get your trading day started.
