The day begins with the futures just a little red, owing to the fact that they weren’t given another nightly gift of $500 billion yuan to make things seem prosperous and thriving. Thus, the /ES is skimming just under the surface of lifetime highs set on Thursday (Although I will note that, over the course of 2024, a full 42 record highs have been set in the equity markets, so I guess they’re just taking a breather).
One market that IS on the move and, happily, is on the move in a way that I wanted, is crude oil. I’ve written about energy shorts more frequently in recent days, and we’re starting the day off with a nice -1.5% slippage, which will help my energy shorts (CLF, SLB, APA).
Another moment of truth is drawing nigh from the Nikkei 225, whose futures have been banging inside an ever-tightening triangle for months now. A resolution to the downside would help the bearish case overall. Keep in mind, this sucker is what brought the world down (for a few days, at least) early in August.
I’ll also tip my hat toward KB Homebuilders, which is one of the larger stocks in the homebuilding sector that I’ve also been pointing out (by way of XHB and ITB) as richly overvalued. They’re getting a skosh of reality this morning as well.
Let’s make a good day of this one, shall we?
