(As of 7:13 am pacific)
So far so good for
September. It is a notorious month for
down markets and the fact that it opened nearly unchanged is a mild plus. All eyes are focused on possible bank interventions
which might occur this week. The Bank of
China, the European Bank (ECB) and the Fed all have potential, in the eyes of
investors, to institute more quantitative easing. Oil is up as is gold while the dollar is
marginally higher. Commodities are mixed
and interest rates are near unchanged.
The August ISM report came in lower than expected and shows a slight
contraction in manufacturing, which mirrors global manufacturing statistics.
Traders are back from vacation and we expect trading volume to increase and a
tone for the markets to be set. It’s
likely that absent other news, the thought of more quantitative easing is
strong enough to provide market support and that the market will erase early
losses.
