August 18, 2021
Good morning,
So far this week, market action has not been as quiet as last week with a couple of 1% probes lower each morning on the major equity indices. However both probes lower this week have been met by buyers with Monday’s mid-day losses completely erased by the close and yesterday’s losses reduced to just noise at the end of the day. Complacency seems uncomfortably high to me but maybe that’s just August at play. Either way there’s no room in the investment process for my feelings on complacency.
Equity futures overnight fluctuated between gains and losses and are set to open about unchanged an hour before the opening bell. The highlight of the day is the release of the Fed minutes, although anyone looking for tapering news there will probably be disappointed. Bonds have been quiet this week for a change – just waiting for next week’s Jackson Hole snooze-fest I suppose. And so it goes – a mid-month Wednesday in August. See you Friday.
Be well,
Mike