The recovery from Sunday night’s gap lower continues today for notes and bonds increasing the chances that the lows hit as markets opened for the week on Sunday night will hold up. The opposite trade is underway in the Dow, S&P and Russell stock indexes as they sell off from Sunday night’s extreme high print. The NASDAQ which started it’s correction earlier last week was higher this morning but the bounce hasn’t gotten too far as the other indexes refused to join in the action. Instead mild but persistent profit taking in these markets that feels like something new underway and may hold things in check for a change . In Washington the tax bill discussion continues. Of course the variables are still in play but the markets by now must have a pretty good idea of what to expect. Meanwhile what continues to work is the same yield curve flattening trend observed and commented on the past few weeks. Tomorrow brings the ADP employment report at 7:15 a.m. and on Thursday more focus on jobs with weekly claims number . Finally Friday the monthly unemployment reading release and consumer sentiment report will hit the tape in the morning.
Please call to discuss opportunities any of these markets.