E Market Briefing For Tuesday, Sept. 23

Market 'anesthesia' - was expected to relieve the pain inflicted by super-cap selling, at least temporarily on Tuesday and perhaps even Wednesday, and that's what we've got going. Too many are trying to rationalize whether these stocks are investments or trading buys 'yet' and the answer is slightly variable, but generally not so investment wise, although for a trade that's exactly what we projected for an intraweek bounce.  

This entire move is technically based, not particularly influenced by a Fed Chairman's and Treasury Secretary's remarks at Congress, nor by the vacillations by the CDC as to the flip-flopping with regard to the precautionary warnings to avoid COVID exposure. (Hint: the weekend 'erroneous draft version' was likely accurate and withdrawn so they can edit and tone it down before posting it again perhaps later this week. Basically its fear-inducing and CDC probably caught flack yet again from The White House on it.)

Executive summary:  

  • Air Force 2 made an emergency landing in New Hampshire, with Vice President Pence aboard, after a 'bird strike', no injuries, not reported yet whether the plane remain on the ground for repairs or can resume its return to Andrews AFB.
  • Tuesday's dip and rebound was facilitated by the Fed's Evan's remarks saying the Fed might 'hike' rates before we got to 2% inflation, although that will likely be viewed as misunderstood and countered by other Fed officials later in the week.
  • Personally I'd be fine with rates firming sooner rather than later, because it would reflect better business conditions and not have the Fed as far 'behind the curve' as they are likely to find themselves down-the-road a bit.
  • The U.S. House passed a bill late tonight to avoid a Government shutdown, this was widely expected to be passed to avoid any such problems.
  • S&P action is almost entirely technical in nature, with no particular departure from our weekend forecast for a breakdown after Quarterly Expiration, a rebound that's generally back to the breakdown point, and then potentially another phase lower.
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