The following was published on FindLeadingStocks.com this morning.
Good Morning Team!
- Bad Month: The market fell hard this week and is on track for another "bad" September. Historically, September has been the worst month of the year on Wall Street.
- Window Dressing: Window dressing doesn't officially happen but unofficially does. It means stocks tend to rally near the end of a period (end of month, quarter, year) because many portfolio managers get paid based on the end of a period's performance. We fell hard this month but are coming up to the end of the month and end of quarter next week. I wouldn't be surprised to see a little "bounce" over that time.
- Government Shutdown Market: House Republicans are rapidly approaching a situation where the U.S. government may temporarily shutdown its operations in less than 10 days. This issue arises from disagreements within the party regarding budget reductions and how to convey their position to the public. As a quick refresher, a government shutdown occurs when the government's funding expires, typically due to disagreements in Congress over budget allocations. During a shutdown, non-essential government services and agencies are temporarily closed, federal employees may be furloughed or work without pay, and certain government functions are disrupted until a budget or funding agreement is reached. It has happened several times throughout history and the issue is just political nonsense because the government always opens up again. Typically, stocks tend to ignore shutdowns.
- Fed Rates Hikes & Cuts - A Historical Look At Fed Rates: The Federal Reserve believes it can avoid two historical lessons about interest rates this time. Typically, when rates go up, they come down fast. But the Fed thinks this time will be different, with a longer period of rate cuts expected. I'm always careful when someone says, this time is different. Is it?
Source: WSJ
- Defense Is King: Sellers are in control right now as many leaders, sectors, and some indices are breaking down below support. I'll show you all this and a lot more in the weekend report.
Have a great day!
Adam
