S&P E-mini Futures:
Mr. Toad's Wild Ride overnight. Up, down, all around. Currently down.
To see the markets gyrate on every word from China is a bit pathetic. It's about time markets traded on fundamentals such as sales and revenues and actual earnings rather than buyback-goosed EPS figures and hopes of more stimulus.
A local businessman mentioned to me yesterday that the only two monopolies that have ever gone bankrupt are right here in Puerto Rico -- the water utility and the electric utility. Why? Too much debt.
What do they borrow the money for? Not for new equipment or modernization: both are antiquated and poorly maintained, and it is well known that many people on the island either pay vastly reduced rates or none at all while businesses get gouged. There is always a shortfall. Meanwhile both utilities are filled with upper-level managers doing nothing but picking up fat paychecks.
The Fed meets next Wednesday and Thursday. We'll soon see whether they send a message to the markets to grow up or whether they'll extend last call at the after-hours party.
The infamous NYC after-hours bar Save The Robots comes to mind. A bar scene straight out of Star Wars.
Can't recall anything good ever coming from it. Ever.
Seeing a lot of range-bound trade in FX pairs.
Rough day yesterday. Choppy action is probably position squaring before next week's Fed meeting. A lot on the line in treasury markets.
WTI crude looks a bit choppy too, though up over 1%.
Gold & silver up 1%, possibly in sympathy with copper's recent gains.
As crazy as futures were overnight, they still don't look like they're ready to break down. So for the S&P cash that could mean finding a bottom sometime today. 1911.21 should hold. If it doesn't new lows may be here sooner.
There is a volume shelf at the 1920 area that should provide support. The ones above at 2000 and the 2050 area still make great targets.