This morning, I’m watching the 2040 region in the June e-mini as support, as well as the 30 year bonds. I only have a slight edge in this market, but I’m actually favoring the downside in equities. Especially with a rally before the 10:20 am turn.
We break below support in equities in a weakening economy, I’m apt to think we may see a little more moderate weakness in stocks the future. As I said during the ‘Week in Review’ podcast, it is somewhat obvious the economy in the United States is slowing down. While the Fiscal side of economic policy seems to be completely asleep or apathetic to any need for productive inflation, I always have my eyes on the monetary side of the house. I can’t imagine the Fed will allow things to completely fall apart without at least offering some forward guidance comments of how they always “stand ready to step in and assist”.
What the future holds … only God knows.
Myself, I’m wary and watching those areas of interest …