Market Recon Monday

Good Morning,

Despite all that we will have front row seats for this week, today gets things off to a slow start.  The macro is lighter than what we’ll see later on in the week.  The FOMC doesn’t go into their policy meeting until tomorrow, and that party really doesn’t get hopping until Wednesday afternoon.  We’ll also have some Fed speakers later in the week, as well as the Bank of Japan.  Who ??  Oh yeah…almost forgot about those guys.  On top of all of this, the US House of Representatives still needs a Speaker, and ….drum roll, please….. the World Series starts tomorrow night.  The first ever World Series between two expansion teams….imagine that after all these years.  If you don’t like baseball, you may want to skip my note over the next two weeks.  OK, only kidding.  Even if you hate baseball, don’t skip my note.

Today’s quarterly earnings highlights are really limited.  You may want to watch such names as ROP (1.57), & XRX (.23) before the opening bell, and TMK (1.06) after the close.  I don’t see any automatic volatility plays until tomorrow.  As for the macro,  we’ll have to wait until 10am, when the Census Bureau releases September New Home Sales.  New Home Sales, though a much smaller number than Existing Home Sales, still carry a lot of weight due to the multiplier effect of construction labor and equipment implications.  We expect a print in the neighborhood of 548K SAAR today, which is smack dab in the middle of the range.  One would have to say that Housing data has been comparatively strong, as the rest of the economy seems to have visibly weakened of late.

About the rest of the economy, you can expect the manufacturing biz to take another body blow at 10:30 ET, when we see the October edition of the Dallas Fed Manufacturing Index.  The Dallas Fed has printed in contraction for each and every month of 2015.  Really?  Yes, really.  Pay no attention to that man behind the curtain.  In fact, if Dallas today, and Richmond tomorrow print in contraction, October will be the second straight month that all Fed regional manufacturing indices printed in contraction.  Just Groovy, don’t you think?  Consensus for today is -7.5.

Nobody can be a great trader everyday, gang….. but everybody can be a great man or woman every single day.  On top of that, even if you screw up at work or home, every day offers you a new chance to be great again.  Let’s be great today.  We’ll do this together.  Sounds funny, but why the heck not?

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Sarge’s TRADING LEVELS

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SPX: 2095, 2087, 2078, 2071, 2063, 2055
RUT: 1178, 1173, 1167, 1160, 1155, 1145