Market Lab Report - Premarket Pulse 9/9/16
Major averages finished lower yesterday on mixed volume, higher on the S&P 500. The NASDAQ's reversal constitutes a near-term failure of its recent breakout to new highs. We would keep a close eye on leading stocks. If these begin to fail, some on recent breakouts or down through critical areas of support, then further downside may be in store. Know where your out points are.
Futures are down as hawkish Fed President Eric Rosengren, a voting member, said the U.S. central bank could resume gradual rate hikes as the risks facing the economy are more in balance.
Other Fed officials are due to speak today:
Dovish Fed Gov. Daniel Tarullo will be interviewed on CNBC at 10am ET.
Fed President Rob Kaplan, a non-voting member this year, will appear twice today, once at 930am ET and against at 815pm ET.
Fed officials met on Sept. 20-21 to set interest rate policy. Any rate hike, if and when it happens, would seem to be a one-time hike since any meaningful series of rate hikes could reverse all the QE-manipulated gains in the stock market since 2009. The interest rate payments on the debt alone could be staggering.
CME Fed futures puts the odds of a rate hike at 26% when the Fed meets in September and at 51% when they meet in November. as been obtained from sources which we believe to be reliable, however, these sources cannot be guaranteed as to their accuracy or completeness. The information and content expressed herein are subject to change without notice and MoKa Investors, LLC and/or its employees may from time to time have long or short positions or may acquire direct or indirect beneficial interest in securities mentioned.
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