Political turmoil drags markets down

John WeyerGeneral Commentary

Dow tumbles

The Dow Jones futures closed down over 330 points from Tuesday’s close as the latest new from the Beltway gave the markets some jitters. The S&P 500 futures closed more than 40 point lower as the equities had their biggest downward move in eight months. The VIX (Volatility index reached it’s highest level since last year’s Brexit vote.

Dollar continues to slide

The US Dollar continued its recent downward trend, breaking 98.00, it’s lowest level since the November election. While the equities are still up nearly 10% post election, the Dollar has given back all of its gains.  The big rosy future may be further off than earlier anticipated.

This news is different

The market has heard tweets and headlines and kept chugging along. This time things are a bit different. The term obstruction of justice is treated lightly and the markets will usually react negatively. Markets tend to be nonpartisan, and have embraced the current outlook for tax reform, and repatriation. The latest news gives the markets concern that those agendas could get sidetracked by an investigation and the circus that goes along with it.

Look for some more volatility to close out the week. We may see the markets search for more support levels before stabilizing.

 

 

Join us this Thursday at 3:00 PM Central for the Walsh Trading Weekly Grain Webinar Sign Up Now

John Weyer

Director Commercial Hedging

Toll Free: 1 888 391 7894

Direct:      1 312 985 0934

Fax:          1 312 256 0109

jweyer@walshtrading.com

WALSH TRADING INC.

53 West Jackson Boulevard, Suite 750

Chicago, Illinois 60604

www.walshtrading.com

Join My Mailing List

Walsh Trading, Inc. is registered as an Independent Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.