The bulls are making a slight push to higher ground following Friday’s monster gains as we head into the second half of trading but volatility could return based on what the Fed Heads say.
There are four speeches scheduled for today by the Fed Heads with one of them speaking twice for 30 minutes of fame instead of 15. The talking heads will try to determine if the statements are dovish or hawkish and say the market is reacting accordingly.
The technical picture is telling us we could have another flat week with some major volatility and Friday’s budget deadline could produce a surprise as there is talk a bipartisan deal could be reached before the zombies head home for vacation.
At a Thanksgiving gathering, we heard chatter there would not be a government shutdown in January and our thoughts were that a budget deal would be reached after we asked why. The simple answer is that the government’s contracts are too important to ignore this time around.
Any compromise or budget deal would be good news for the market. We keep hoping for corporate tax reform but we will save that topic for another day.
The Dow is currently up 20 points to 16,040 while the S&P 500 is advancing 4 points to 1,809. Remember, a close above 1,810 on the S&P would be bullish. The Nasdaq is higher by a 6-pack to 4,069 while the Russell 2000 is DOWN 3 points to 1,128. The VIX is at 14.03, up 0.24.
There are a few earnings trades we like for this week and we could have New Trades as early as this afternoon so stay locked-and-loaded. We have some updates on our current trades that are showing some strength as well. Subscribers, check the Members Area for the updates.