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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Håvard Halland Håvard Halland

PHåvard Halland is a natural resource economist at the World Bank, where he leads research and policy agendas in the fields of resource-backed infrastructure finance, sovereign wealth fund policy, extractive industries revenue management, and public financial management for the extractive industries sector. Prior to joining the World Bank, he was a delegate and program manager for the International Committee of the Red Cross (ICRC) in the Democratic Republic of the Congo and Colombia. He earned a PhD in economics from the University of Cambridge.