WASHINGTON, August 22, 2017 – Late August trading tends to get bearish and sloppy for any number of reasons. Big time traders and investors are off wallowing in their posh mansions, yachts and other assorted luxuries in the Hamptons and elsewhere and can’t be bothered with the vagaries of 2017’s very-confused second half action. Quant and hedge fund supercomputers seem to be in extended maintenance mode. And the promised Trump business revolution is in sputter mode, at least for now.
We watched a mildly bullish Monday trading session slowly wilt around mid-afternoon as mass quantities of people everywhere quietly exited their respective workplaces to catch whatever percentage of the total solar eclipse they could see.
We conduct our trades here in our home office, and joined the rest of America by playing hooky from our trading activities as well, adding to (subtracting from?) a low-volume day.
We experienced about 80 percent of sun-coverage by Mr. Moon here in the D.C. metropolitan area. It was a pretty good show at that, even if we were reduced to using a homemade “pinhole” viewer to view the event, as area stores were sold out of official solar glasses before we got there. Unfortunately, much of the eclipse here ended up being obscured by an untimely cloud cover, which miraculously departed after the show was over. So it goes.
Monday closed uneventfully. But for some reason, traders and investors seem fired up today. As of approximately 10:30 a.m. ET, the Dow was up a nifty 132.41 points or so, driven by positive moves in Apple (symbol: AAPL), Boeing (BA) and anything having to do with the defense industry, given President Trump’s positive reset of the failed Obama Afghanistan fake strategy in a generally well-received speech Monday evening.
The S&P 500 was up 15.41, and the tech-heavy NASDAQ – badly damaged in August – tried to get back in the game by adding an impressive 57.16 points as we write this, a nearly 1 percent gain on the day thus far.
Across the pond, European bourses (exchanges) were also gaining. The Stoxx 6700 index was up approximately 0.6 percent, and Asian averages were mostly higher as well.
Running in background and not much reported thus far – given the media’s continuing obsession with the President’s post-Charlottesville issues – is this year’s annual economic policy confab. It’s hosted, as always, by the U.S. Federal Reserve in luxurious Jackson Hole, Wyoming, where wealthy elites go to play.
This international banking meeting tends to draw a great deal of attention every year, as financial prognosticators seek to opine on the generally opaque international economic pronouncements that generally surface around mid-week. The sun and the moon blotted them out Monday, but buzz is picking up Tuesday.
We’ll keep you posted if anything big surfaces on this front. Otherwise, we expect at least a moderately bullish Tuesday in reaction to the markets’ extremely oversold situation.