Mid-Day Thoughts

Good Afternoon,

                       With European markets closed, and some American participants adding Monday to their long weekend, trading volume is very light.  Very, very light.  With that in mind, we’ve seen some development in our macro-economic snapshot (as have those rascally Fed Speakers), and now we move on to the meatier, almost surely far busier portion of our workweek.
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1) For half of a day now, the S&P 500 has been unable to escape the gravitational pull of the key 2035 level.  For our retail traders out there, who prefer to play small ball, this is exactly how you like a pivot to perform.  We do not go very far in either direction without hitting some traffic.  There should be something at 2041 to the up, and 2030 on the way down, but they are both less significant than their bookends.  Consumer stocks lead, both Discretionary names, and Staples.  Transports, and Energy stocks are doing the electric slide.
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2) Let’s do some macro.  The good.. Pending Home Sales actually roared, printing at a face-ripping 3.5% m/m.  The bad.. Personal Spending was revised significantly lower for January, that put the full smack-down on the Atlanta Fed’s Q1 GDPNow forecast.  Ouchies !!  On top of that, Core PCE did not support the recently hawkish Fed mantra….meaning nothing.  The Ugly…  The Dallas Fed Manufacturing Index printed in contraction for 746th month in a row.  (Really, it’s 15)
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3) Weakness in the mighty US dollar, isn’t doing much so far for Oil, and Gold prices…  unless it is.  Both are lower, but neither is scaring anyone.  Treasuries are firmer after having been lower.
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4) Six days til baseball.
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5) Don’t care about college basketball.