According to Bank of America Corp., ahead of “presidential standoffs, trade tensions and central bank meeting”, most of you probably think becoming couch potatoes, news junkies, is the way to go.
Today, the news is all about the aftermath of the G-7.
Tomorrow will be the meeting between Kim Jong Un and Trump.
Wednesday is the Fed meeting where expectations are for another ¼ percent rate hike.
Thursday, all eyes will be on Draghi and whether he will announce an end date for their quantitative easing.
Also on tap, Putin and the Saudi crown prince bromancing at the World Cup. Will they talk oil?
Friday, if we have any attention span left, we go east to Japan. Will they continue to buy huge amounts of their own government bonds?
Furthermore, there is a June 15th deadline to publish a list of Chinese imports possibly facing $50 Billion in tariffs.
Sure, you could watch the endless interpretations and predictions by pundits and experts.
But what if you want to make your own decisions about what to do with your investments?
I have a TV show for you. No, not the Modern Family currently on network.
Rather, the Economic Modern Family, currently in heavy conflict among one another.
Today, it was all about Transportation (IYT).
Tran took control of the instruments with airlines, truck delivery services and railroads.
Of course, those of you who tune in to my Daily episodes of the Modern Family, already know that once IYT cleared 197, it was a healthy sign for the economy and the market.
The Russell 2000, after last Friday’s inside day near all-time highs, paused again.
Gramps could be offering Tran the goods already made for movement.
Or, it could be that he is older and wiser, therefore more cautious before taking out last week’s all-time high or telling us he’s tired.
Granny Brick and Mortar Retail (XRT), feels rich. Not particularly influenced by talk of how the tariffs will negatively impact the cost of goods, the mall is packed with shoppers.
Big Brother Biotechnology though, had an inside or pause day.
Makes sense that new speculators would sit on the sidelines watching TV in hopes of finding some sense out of the recent events.
Regional Banks, our Prodigal Son, who should be on a tear in front of the Fed meeting, was red today.
That also makes sense given the talk that the Fed may slow down the process of reducing the balance sheet.
Finally, our sister Semiconductors, after last Friday’s gap down, sat on the support area of 109.40.
It appears that if volatility picks up, which it can easily do, the tech sector will get hit the hardest.
As my long-time readers know, relatives often pop up to influence the Family dynamics. This week, we expect cousin gold and cousin silver to show up after the CPI numbers come out.
World peace or bomb shelters?
Depends on which channel you watch.
S&P 500 (SPY) Got right to resistance at 279-280.40. For Tuesday, consider 278.50 pivotal-good above, dicey below.
Russell 2000 (IWM) 168 still the target if holds 165.
Dow (DIA) 250 cleared so now it becomes support. 255 some resistance
Nasdaq (QQQ) Above 176 will look better. Support to hold 172.50-173