The path of least resistance is higher, this is undeniable. The U.S economic data is underwhelming at best and hopes of turning a corner were dimmed yesterday with another weak read on Manufacturing PMI.
Yesterday was a constructive session, pullbacks held technical support before closing strongly on a tailwind from news that the U.S and China will soon resume talks.
U.S benchmarks firmed-up yesterday from Friday’s late selloff and are extending gains this morning after President Trump announced a bipartisan deal to lift the debt ceiling and boost spending.
U.S benchmarks slipped sharply into Friday afternoon as Fed rate cut expectations for next week’s meeting were toned down. The table was really set Thursday afternoon when NY Fed President Williams said the Fed should act preemptively to battle slowing growth.
The Federal Reserve is in the driver’s seat and yesterday’s rip higher was the latest example. NY Fed President Williams said the central bank should act quickly and preemptively to fight economic slowdowns.
Correlation trading indicator is designed by Futures Magazine data science team to enhance directional trades, regime decision, diversification and position sizing.
U.S benchmark finished lower yesterday, a day after President Trump poured cold water over trade hopes. One topic at our trade desk yesterday morning was the resilience in U.S Treasuries ahead of U.S hours, as if they were the canary in the coal mine for a weak session to come.
S&P 500 finished lower yesterday. Comments from President Trump yesterday on trade with China that sent stocks lower.
CTA Trend Following model shows Cocoa futures were stopped out and JPY/USD flipping between long and neutral in different models.
U.S benchmarks are holding ground at record levels ahead of a deluge of bank earnings, economic data and Fed speak. Citigroup kicked things off yesterday beating top and bottom-line estimates but finished near unchanged.