In This Issue
The best quarter in decades for the stock market just came to a close. Low interest rates and massive global stimulus supplied by world governments have not yet led to consumer inflation but asset classes across the board are benefitting. Commodities and stocks have rebounded on the prospects for a global recovery, while bond yields remain low on the expectation that central banks will hold down interest rates for a long time to come. This apparent sweet spot for investors could be threatened, however, as government officials begin the complex task of explaining and implementing "exit strategies" from stimulative policy. As the withdrawal from certain measures is plotted and others programs taper off naturally, the sweet spot will likely come to an end, and some asset classes may suffer.
Tapering on the Tape
US stocks have rebounded tremendously from March lows, and the S&P500 index enters October more than 20% above its 200-day moving average. Stocks are clearly overbought, but continue to benefit from late movers who missed the earlier rally and jumped in late in Q3 on fears of missing another leg to the upside. Still, the ascension of equities has slowed in recent weeks as the always tempestuous month of October loomed.
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Above is a weekly chart of gold futures, which broke all-time highs yesterday. Gold is currently trading around 1042 and volatility is picking up.
Contact your broker via email or by phone at (800) 454-9572 to discuss different gold strategies.
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 10/08 Thu |
7:30 AM CDT - Initial Claims-Weekly
7:30 AM CDT - USDA Weekly Export Sales 9:00 AM CDT - Wholesale Inventories(Aug) 9:35 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
|
| 10/09 Fri |
7:30 AM CDT - Trade Balance(Aug)
7:30 AM CDT - Crop Production 7:30 AM CDT - USDA Supply/Demand |
LT: Oct Canadian Dollar Options(CME)
Oct Currencies Options(CME) Oct US Dollar Index Options(ICE) Nov Coffee Options(ICE) |
| 10/12 Mon |
Columbus Day Holiday
|
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| 10/13 Tue |
|
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| 10/14 Wed |
7:30 AM CDT - NOPA Crush
7:30 AM CDT - Export & Import Prices(Sep) 7:30 AM CDT - Retail Sales(Sep) 9:00 AM CDT - Business Inventories(Aug) 1:00 PM CDT - FOMC Minutes(Sep) |
LT: Oct Lean Hogs(CME)
Oct Soymeal(CBT) Oct Soyoil(CBT) Oct Lean Hogs Options(CME) |
| 10/15 Thu |
7:30 AM CDT - Core CPI & CPI(Sep)
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - USDA Weekly Export Sales 9:00 AM CDT - Philadelphia Fed(Oct) 9:35 AM CDT - EIA Gas Storage 9:35 AM CDT - API & DOE Energy Stats 3:30 PM CDT - Money Supply |
LT: Nov Crude Lt Options(NYM)
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* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!