Look for end of the quarter “window dressing”/rebalancing wars
I expect the end of the second quarter to be volatile as two contrary trends battle it out to set market direction.
U.S. stocks rally on good economic news and end of the quarter window dressing
U.S. stocks are up as of 1:30 p.m. today. The Dow Jones Industrial Average is ahead 0.95% and the Standard & Poor’s 500 stock index is up 1.08%. Two reasons for this, I think, and the second is more important today. First, we had a raft of positive economic news this morning. Second, it’s the end of the first quarter and last chance for window dressing.
It’s not to early too think of end of the year window dressing by portfolio managers–it’s likely to decide which stocks move higher or lower over next month or two
In a momentum market, which is what we have, you put money into the stocks that are riding the momentum upward. An equally weighted index of Alphabet, Amazon, Apple, Facebook and Microsoft is up 42% in 2017. That holds true on the downside too. This market has taking the losers and crushing them some more. Bed Bath and Beyond is down 53% for the year.
It’s time for pre-earnings fun and games.
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Saturday Night Quarterback says, For the week ahead expect…
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Look out for end of the quarter volatility this week
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Download Jim’s eBook for Free
