MV Weather Report: Windless May Ends With Light Breeze
Rain or shine, we review the day's biggest stock stories.
Those are some wild statistics but May itself really wasn't too spectacular. Other then a few sharp up and down days, the market has been stuck in a trading range. This should have been expected after the amazing stretch from March to April.
As for today's trading, the market was indecisive and at the end of the session the S&P 500 closed up 0.97%.
We've been monitoring the action in the bond market all week and on today's Buzz and Banter, Professor Jeff Cooper Buzzed about the action.
"Rates are receding a tad which is shown by the solid rally in the TLT.
"Despite rates backing off from their blistering rally, the broad market still acts heavy which strikes me as particularly bearish short term especially in view of the fact that today is month end when there was "supposed to me a buying panic" AND in light of the 3 lower highs on the hourly S&P.
"Someone's breaking ranks."
Monday is the first day of June and traders will be watching for Personal Income and Personal Spending, both of which are due out at 8:30 am. The week is actually packed with economic data. On Friday the market will get the all important jobs numbers which I believe is the single most important economic indicator right now. For a look at that rest of the week ahead check out the trading radar.
Today on the Buzz and Banter, Professor James Kostohryz gave his preview for the week ahead.
"Employment numbers will be the most followed. Unfortunately, expectations were raised after last month's surprise. The problem is that I am not sure that consensus forecasts are fully taking into account the direct and indirect effects of what is going on in regions heavily influenced by the auto industry. Not only are there lay offs in auto and related industries, just as important, there is also a chilling effect on hiring in all economies reliant on these industries. Having said that, I expect stronger hiring trends in various regions, and this might just offset the effects mentioned above. Unless I come across some more data next week, I will feel quite uncertain about how this number is going to come out.
"All in all, it seems trading could be somewhat listless and directionless next week. Traders will be leaning short. But institutional flows will keep a bid under the market, probably frustrating most downside probes. "
Have a great weekend Minyans!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter