since 2008, sending it daily shortly after the market close.
The opinions expressed below are my own and
do not necessarily represent those of Harvest Volatility Management, LLC.
Still sleeping. The S&P traded in a tight range today (10 handles, 35 bps) and things were quite sleepy. Capital flow was incredibly light at 79%.
Let’s just stop there. Whatever headlines that printed today are nearly irrelevant. Investors were not active today and whoever did participate in trading didn’t push prices forcefully in any direction.
We are in a very quiet wait-and-see mode. We are waiting-and-seeing for the FOMC decision on Wednesday. The market has about a 20% expectation for a 25 basis point reduction in rates. Most strategists and commentators are assuming the Fed will not change rates but will make substantial changes to the statement language and internal expectations. The market is banking on strong signals from the Fed that they will deliver a 25 basis point cut in July.
Baring war or some crazy trade-related news, there is little that will jolt investors into action until we hear from the Fed.
Late last week was quiet while we waited. Today was quiet while we waited. Tomorrow and Wednesday prior to 2 PM will be quiet while we wait.
That’s the fact, Jack.
See you tomorrow. -Mike