Today has mostly been a quiet and very typical summer Monday. The market has been down from the outset but has tried to get positive all day. Volume has been very light. That could all change as we move into the rest of the trading week. Fed Chairman begins two days of questioning before Congress tomorrow for his semi-annual report. Traders will be parsing his words carefully to catch any hints of any further monetary easing (QE3). There are also a number of economic reports and options expiring on Friday (which leads to much heavier volume and volatility). Companies will also start reporting earnings in droves with many big names reporting this week - Bank of America, Goldman Sachs, Google, Microsoft, Intel, Yahoo, Qualcom and IBM to name just a few. The S&P (currently at 1352) is bound by 1344 on the downside and 1374 on the upside. A breakout either way would provide the near term direction of this market. There will be lots for the market to digest this week so hopefully we will get some clarity. However, we may be in this range bound market through the summer but time will tell.
Welcome to the extended version of the BAM Market Note. We are not bloggers by nature but have had clients and friends inquire about our thoughts on the market in between our newsletters. The number and content of posts will likely be determined by the conditions of the markets and the interests of our readers. We would greatly appreciate your feedback and comments.
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