Today is 9/11. The events of fourteen years ago still bring a lump to my throat, remembering the college classmates, friends and associates who lost their lives. Yes today’s volatility is deafening, causing anxiety levels to rise considerably but these emotions/events are nothing as compared to those felt on that and proceeding days. I ask all to remember all in your thoughts and prayers.
Commenting about yesterday’s market action, trading was relatively subdued as compared to past sessions. Oil advanced almost 3.5% on speculation that declining American production may whittle away a global surplus. The Energy Information Administration (EIA) cut US output in 2015 and 2016 predicting a slide to 8.82 million barrels a day next year from 9.22 million a day in 2015.
There was also further discussion of additional OPEC countries discussing a reduction in production in concert with non OPEC countries as the financial pressures are really starting to mount.
All must remember nothing moves linear and change is the only constant.
What will happen today? Will most stay on the sidelines awaiting the outcome of next weeks’ FOMC meeting, a meeting that is the center of intense narrative?
Will the outcome subdue some of the recent volatility, volatility that is so extreme that it is making it very difficult to make rational decisions given the absence of a concrete reason to explain these violent moves?
Today the PPI and University of Michigan sentiment surveys are released. What will this data suggest?
Last night the foreign markets were down. London was down 0.33%, Paris down 0.83% and Frankfurt down 0.91%. Japan was down 01.9% and Hang Sang down 0.27%.
The Dow should open moderately lower as nervousness of the upcoming Fed meeting is increasing further. I ask do we fear more of the unknown than known where perhaps paralysis is setting in? The 10-year is up 6/32 to yield 2.21%.
