Seems that today the expected pullback came. Considering the S&P 500 had posted over 60 points in 2 days last week it was highly probable that the bears would take temporary charge and allow for profit taking. This has been quite the roller coaster ride that, frankly, I am glad to be out of.
Should it break out tomorrow I will be filled on some trades, but I doubt that the pullback is over.
Greece is a wild card, and it is coming to a head. There is pressure on Angela Merkel to cut them loose in Germany and the IMF is working on contingency plans should they default.
All in all, it’s a highly volatile environment that i would prefer to buy into after a considerable sell off. But as always, I will follow my rules and my trading plan that has served me so well in the past.
U.S. stocks closed lower on Monday, giving back some of the strong rally on Friday’s jobs report, as investors eyed gains in bond yields and awaited the week’s data releases.
No major economic news or earnings reports are expected Monday. Retail sales and industrial production figures come out later in the week.
The April employment report showed continued economic growth, but not strong enough for most analysts to expect an immediate rate hike.
San Francisco Federal Reserve President John Williams said on CNBC’s “Squawk on the Street” that the employment report showed “good momentum” for the rest of the year. He also expects GDP to rebound from a weak first quarter.
Greece paid about 750 million euros to the International Monetary Fund on Monday, a day before it was due, two Greek finance ministry officials told Reuters on Monday.
The Eurogroup of regional finance ministers met on Monday and said in an official statement that it welcomed progress achieved in Greece’s negotiations with its creditors for a cash-for-reform deal but said more work is needed to bridge differences holding up a comprehensive agreement.
European equities were mixed Monday, pausing after a rally on Friday, and overlooking the news that China has cut interest rates for the third time in six months.
The People’s Bank of China (PBOC) announced the cut in its benchmark lending rate and one-year deposit rates by 25 basis points on Sunday, as growth in the Asian economic giant slowed to levels not seen since the global financial crisis.
Earnings: Allianz, EnCana, McKesson, Zillow, Voxeljet, Vivint Solar, International Flavors and Fragrances
9:00 am: NFIB small business survey
10:00 am: JOLTs
12:45 pm: San Francisco Fed’s Williams on economic outlook
1:00 pm: $24 billion three-year note auction
2:00 pm: Federal budget