It’s not as if the market cares about economic data or geopolitical events lately as it seems it’s only been concerned with getting back to 1150 as quickly as possible. This past week saw the $SPX climb, at an unstable pace in my humble opinion, all the way back. The late day move higher on Friday to close near the top of the afternoon chop channel just added to the frustration levels of the many who are calling for a pullback. As I spent this weekend pouring over my favorite blogs and such one thing is clear–the market is taking an emotional toll on many. This coming week is packed with market catalysts and that typically leads to reactive trading so be on your toes.
The FOMC meeting starts Monday and culminates on Tuesday afternoon with the statement and the Fed funds rate. While it’s widely expected that the Fed will do nothing to the rate itself, what isn’t so clear is what tone the statement will take. On Wednesday we get the Producer Price Index (PPI) and that’s followed by the Consumer Price Index (CPI) on Thursday which will round out the events for the week.
Some decent names I’m watching for earnings include $DFS on Tuesday, $NKE on Wednesday, $FDX $PALM and $GME on Thursday. The market will also be held captive by option expiration this week as the gambler in many comes out with pinning action and the selling straddles. No matter what or how you traditionally trade, there should be ample opportunities to participate in the market this week. Just remember to plan ahead and be proactive when you do engage as it should be a fun week!