In regard to this week’s news flow, apparently the market
doesn’t think whatever it was that went on in Syria matters for US corporate
profits. At the onset of the bombing Thursday evening S&P500 Futures fell
20 points, but within a couple hours prices had completely reversed and were
nearly flat on the session. We also saw a softer than expected Jobs Report for
March. With the combined military action and weaker than expected economic report
I would have expected the market to be lower by at least 1%. That simply wasn’t the
case at all as for most of the day prices flipped into the green multiple times
and ended flat on the day.
It is some very interesting price action we are seeing.
Nobody is committed to selling this market. In the face of bad news on multiple
fronts it simply shrugged and relatively strong stocks continued to rally. The
recent action overall has been softer for the past month, this “event”
seemingly should have caused raucous noise and very volatile trading, yet it
didn’t. Be sure to note that behavior. It is suggestive of great strength in
the underlying price action.
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