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Markets are steady going into this week, with major indices posting slight gains throughout the morning, but there are a lot of things to watch out for that could create volatile swings. Overall, we still need to be very careful out here and stay nimble, prioritizing short-term trades over committing to long-term positions.
If you haven't checked out my piece on Friday about last week's 24-hour "rally to rout" in the bond market, you really should, because it's going to impact how this week (and in fact, the future of the stock market as interest rates remain higher for longer) shakes out.
The "buyer's strike" in 30-year Treasuries suggests that the usual players who have reliably bought bonds in the past, including the Federal Reserve, are no longer in the market, and things could get ugly if the shortfall if banks, private investors, and retail investors also continue to hold out in a perpetual stalling action for higher term premiums.
On top of that, we have a lot of information coming out this week that could create narrative headwinds for equities in general. We've got at least eleven Federal Reserve members speaking this week, all of whom have the potential to influence investor confidence for better or for worse. Retail sales numbers and consumer spending reports will give us an idea of economic activity going into the holiday season - if things are going too well, it could stoke fears of another rate hike in December.
All in all, there are a lot of balls in the air. This video should help you keep track of everything you need to be watching:
As always, when we find ideal opportunities for you, we'll keep you posted. Keep an eye out until then.
The post It's a Trader's Market This Week as Potential Headwinds Loom - Here's What to Watch appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.