For those traders who have seen their share of market gyrations, August certainly provided no lack of volatility. Adding to market volatility is the ever increasing amount of rhetoric and punditry in both the economic and market sentiment category. Today’s employments numbers, we are certain, will provide a bit of fuel for either camp of sentiment analysis. Underpinning the market internals is the concern of global economic woes specifically in the Asian and emerging market regions. Adding to the growing economic uncertainty among macro economists are market technicians gathering to voice opinions on short and medium term macro moves. This no doubt leads to a bit of confusion for both short term and swing traders.
Notwithstanding unanticipated global events, traders are gearing up for a rather interesting time of the year. Traditionally, September brings volume and the return of sun soaked portfolio and money managers.
We will continue to monitor the situation out of Asia. The most recent Chinese currency events will continue to pave the way to some uncertainty among market participants and macro economists. Traders will need to contend with the continued news flow out of the area. The nuance is the impact on the US dollar.
The US economy provides an interesting dilemma for traders. Numerous opinions are abounding with regard to the FOMC and its forthcoming rate decisions. The impact of the rate decision will most certainly affect FX, Fixed Income, and Equity and Derivative markets.
We must not forget the ongoing saga in the commodity and specifically crude oil markets. The recent extreme volatility poses greater uncertainly not just for commodity traders, but for portfolio and money managers involved in both large and small oil based equity names.
The setup for September is proving to be most interesting….stay tuned.
