Even though it arguably hasn’t resulted in anything wholly concrete, international interest in constructing an effective “Euro-zone put” had money managers covering shorts and putting money back to work, likely concerned about being under-invested going into year-end. That buying brought stocks back near the top of their multi-week channel, leaving the S&P 500 (SPY) higher by +5.4%.
While we have a Fed day next week to consider, I suspect that buyers’ resolve could be tested early on with short-term indicators now well overbought, news risk high, and languid economic reports continuing to predominate.
Meanwhile, have you checked out Engineering Return’s “Portfolio Trader“? It has had a nice first couple weeks out of the gates — Great Work Frank!
[Week 38 Economic Calendar]
Source: Mrkt_Commentary subscription service; prior weekly posts.
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