On Friday we saw Non-Farm Payrolls which as it often does, saw the market move somewhat. Today however is likely to be a less exciting day for traders, particularly as it is Columbus Day in the USA. Although the markets are expected to be a little quieter today, I can imagine Teresa May is having a quiet day at the office, with just about every newspaper main headline relating to either a Brexit No-Deal situation or a major cabinet reshuffle. It will be important in the coming days and weeks to keep a close eye on this situation as the markets are likely to react negatively to any further uncertainty out of the UK Government.
Last night, when the Shanghai metals trade reopened after is long closure we saw an uptick in the price of Gold so it is worth keeping an eye out for any further movement in the precious metals value throughout the day albeit this may only be a modest increase with ‘holiday’ volumes in play.
Looking at the Geopolitical situation there are no major new headlines from North Korea catching our attention however the US has suspended all non-immigrant visa services at all US diplomatic locations, with Turkey returning the favor for all US citizens.
With no new developments on the North Korea situation, US Equities continue to move higher and we are struggling to find a reason why the S&P won’t make it 8 weeks in a row to close higher.
Looking at the calendar for today, there is little in the way of economic data that is likely to move the markets. Therefore, we expect to see no significant moves unless of course updated news is reported on Teresa May or BREXIT.
Looking around at the charts, it’s hard to see a reason why the S&P won’t continue to trend higher however, we have spied a potential short selling opportunity in Oil as Wednesdays lows coincide nicely with today’s pivot which is likely to act as a nice area of resistance.
With markets largely range-bound and it being a US holiday today, we continue to look for Dollar strength against the Euro to continue, with a similar story T-Notes. Therefore, with potentially little opportunity available today, we would cautious of entering any trades too aggressively and suggest saving our WealthFX ammo for later in the week.
After all, there is plenty going on later this week that is likely to make things more interesting – continued BREXIT talks, OPEC comments and speaks from the ECB and FED.