Posts

Sevens Report – Technical Targets: Santa Rally vs. Grinch Selloff

/in , /by

What’s in Today’s Report:

  • Technical Targets: Santa Rally vs. Grinch Selloff

Futures are slightly higher mostly on momentum following a generally quiet night of news.

Japanese stocks declined 1% and gave back some of Thursday’s rally on more hawkish chatter, as a rate hike later this month remains a distinct possibility.

Economic data was mixed as Japanese Household Spending fell more than expected (-3.% vs. (E) 1.5%) while German Manufacturers’ Orders beat estimates (1.5% vs. E) 0.5%).

Today focus will be on economic data and the most important report will be the September Core PCE Price Index (E: 0.3% m/m, 2.9% y/y).  This is a delayed report from the government shutdown and it’s “old” data at this point, but it’s also the first major inflation report markets have seen in months and for this rally to continue, we’ll need to see in-line data that does not hint at any sudden rise in inflation (which could jeopardize another Fed rate cut).

Other economic reports today include Consumer Sentiment (E: 52.0) and Consumer Credit (E: $9.4B), but unless there’s a major surprise, that shouldn’t move markets.

 

Looking Ahead to 2022

/in , /by

What’s in Today’s Report:

  • Looking Ahead to 2022 (The Omicron Threat May be Fading But the Coast Isn’t Clear)
  • Weekly Market Preview (Clear for a Santa Rally but Depends on Omicron Headlines)
  • Weekly Economic Cheat Sheet (Housing Data and Jobless Claims This Week)

Futures are slightly higher on continued momentum from last week’s rally following a quiet holiday weekend.

Omicron optimism continued to help push risk assets higher as markets continued to adopt the idea that while COVID cases will soar, hospitalizations will remain low and as such there won’t be any major lockdowns.

There were no economic reports overnight and the global economic calendar for the week is pretty empty (as is usually the case for this week).

Today there are no notable economic reports and no Fed speakers, so we’d expect generally quiet trading that will be driven by Omicron headlines and year-end positioning (that’s likely to be the case all week).  Any stories that further confirm Omicron COVID is not as severe as the previous COVID will help stocks extend the rally into year-end, while any headlines about lockdowns will be a headwind.

 

Annual Discounts on Sevens Report, Alpha and Quarterly Letter

We’ve continued to be contacted by advisor subscribers who want to use the remainder of their 2021 pre-tax research budgets to extend their current subscriptions, upgrade to an annual (and get a month free), or add a new product (Alpha or Quarterly Letter).

If you have unused pre-tax research dollars, we offer month-free discounts on all our products. If you want to extend current subscriptions or save money by upgrading to an annual subscription (across any Sevens Report product), please email info@sevensreport.com.