Wednesday, August 31, 2016

Don't Get Restless

It can be tough to just sit there and do nothing but that is the best course of action when there is very little edge.  The market has gone on a 6 week summer vacation, and it didn't give traders advanced notice.  Still sitting in boring low volatility range trading, with no impetus to move.  Sure, the Fed talked tough, but the bond market has already gained back the losses from the Jackson Hole dip.

Markets don't sell off for long when the economy doesn't change and stock markets are in uptrends.  It is as flat and boring as it gets.  Only time I have seen less action in the market is between Christmas and New Year's.  But that is 1 week.  This has been ongoing for 6 weeks now.

The latest hot topic is a possible Fed hike.  How many times will these fixed income knuckleheads get scared by a rate hike when the last one caused the 10 year yield to go from 2.30% to 1.65% in less than 2 months?  If the Fed hikes again, it will have minimal effects on the 10 year yield.  In fact, it will just cause a faster drop in rates at a later time.

As for equities, I have no edge in these kind of markets.  I will let the daytraders try to beat the HFTs.  I sure won't try.  Checking out for now.  See you later when the market moves.

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