EconoMonitor

The Market in a Minute

Although the S&P 500 lost about 1.5% this week, I believe stocks want to move higher. Pre-market futures indicated a higher open each of the five trading sessions, only to be pressured lower during trading hours on worries over the fiscal-cliff. Once a resolution to the fiscal-cliff is apparent, expect a significant rally.

Next Weeks’ Market Moving Events:

Monday:

  • Oil prices may gyrate as tensions between Israel and Hamas continue to rise.
  • The Existing Home Sales report at 10:00 AM will be the key economic report of the day.

Tuesday:

  • Housing Starts data is released.

Wednesday:

  • The weeks’ busiest reporting day, is also likely to be a light volume day.
  • Jobless Claims, Consumer Sentiment, Leading Indicators and EIA
  • Petroleum reports are all on tap.

Thursday: Happy Thanksgiving

Friday:

  • Expect light trading volume on this half-day.
  • Should there be a rally investors might be able to take advantage of some option pricing discrepancies today.

The Trade:

With politicians on holiday, action in the Middle East heating up, and our expectation of a volatile December, continue to take advantage of any broad market rally to sell weaker names and buy puts for your portfolio.

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Emre Deliveli The Kapali Carsi

Emre Deliveli is a freelance consultant, part-time lecturer in economics and columnist. Previously, Emre worked as economist for Citi Istanbul, covering Turkey and the Balkans. He was previously Director of Economic Studies at the Economic Policy Research Foundation of Turkey in Ankara and has has also worked at the World Bank, OECD, McKinsey and the Central Bank of Turkey. Emre holds a B.A., summa cum laude, from Yale University and undertook his PhD studies at Harvard University, in Economics.

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