{"id":212759,"date":"2024-10-01T11:00:35","date_gmt":"2024-10-01T15:00:35","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=212759"},"modified":"2024-10-02T03:54:18","modified_gmt":"2024-10-02T07:54:18","slug":"a-quick-one-while-hes-away","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/a-quick-one-while-hes-away\/","title":{"rendered":"A Quick One While He\u2019s Away"},"content":{"rendered":"\n<p>I apologize for the seemingly cursory nature of today\u2019s piece.&nbsp; I have a commitment that will take me out of the office this morning, so I will instead focus on a few key points:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Middle East tensions<\/strong>: They\u2019re certainly not good for markets by any means, but it\u2019s important to keep in mind that equity markets are not particularly good at discerning the impact of geopolitical events on stock prices.&nbsp; Remember, investors are very good at figuring out how news events might affect revenues, earnings, cash flows, etc., but that\u2019s very tough to do for the vast majority of stocks when it\u2019s events halfway around the world.&nbsp; Instead, I look to bonds, where there is indeed a flight to safety bid, and oil, which is up modestly, but by no means panicky.<\/li>\n\n\n\n<li><strong>Dockworkers strike<\/strong>: Also, not good news, but not having a huge impact yet.&nbsp; Fedex (FDX) and UPS caught bids yesterday on hopes that they will benefit, but they\u2019re giving much back today.&nbsp; And Walmart (WMT) is up, which is counterintuitive if imports are impacted.<\/li>\n\n\n\n<li><strong>Economic reports<\/strong>: Is good news bad again?&nbsp; On an <a href=\"https:\/\/www.cnbc.com\/video\/2024\/09\/06\/labor-market-isnt-breaking-down-but-its-skating-on-thin-ice-says-kpmgs-diane-swonk.html?&amp;qsearchterm=swonk\">early September media appearance<\/a> I asserted that good news was good and bad news was bad because it was clear we were getting rate cuts at the next meeting no matter what.&nbsp; And we did, bigger than many expected.&nbsp; Now we\u2019re quibbling over the magnitude of subsequent cuts, about which Powell is trying to tamp down expectations.&nbsp; So, when we think about this morning\u2019s selling after mostly better than expected numbers, we seem to have switched again.&nbsp; JOLTS up and ISM prices down are good news for both ends of the dual mandate.&nbsp; But that means 25bp, not 50bp\u2026.<\/li>\n\n\n\n<li>It is very hard for the S&amp;P 500 (SPX) to escape the gravitational pull of Apple (AAPL) &amp; Microsoft (MSFT).&nbsp; But it\u2019s clear that at least a piece of the decline is simply giving back the end of quarter pump that we saw yesterday, since the Midcap (MID) and Russell 2000 (RTY) indices are also down similar to SPX.&nbsp; Consider where we were prior to the Iran story and economic data. At that point, we had simply given back the last 20 minutes of yesterday, which was clearly \u201cmark the close\u201d activity:<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"761\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-1-1100x761.png\" alt=\"SPX INDEX\" class=\"wp-image-212761 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-1-1100x761.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-1-700x484.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-1-300x208.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-1-768x531.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-1.png 1298w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/761;\" \/><\/figure>\n\n\n\n<p>Source: Interactive Brokers<\/p>\n\n\n\n<ul reversed start=\"5\" class=\"wp-block-list\">\n<li>I literally just finished this table, which puts both 3Q and YTD in perspective.\u00a0 Basically, if you invested in risk assets, you won:<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"763\" height=\"747\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-2.png\" alt=\"\" class=\"wp-image-212779 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-2.png 763w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-2-700x685.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/10\/Picture1-2-300x294.png 300w\" data-sizes=\"(max-width: 763px) 100vw, 763px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 763px; aspect-ratio: 763\/747;\" \/><\/figure>\n\n\n\n<p>Source: Interactive Brokers<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I apologize for the seemingly cursory nature of today\u2019s piece.  I have a commitment that will take me out of the office this morning, so I will instead focus on a few key points.<\/p>\n","protected":false},"author":4,"featured_media":204898,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14700,18,6,8,9,22,26,3],"tags":[],"contributors-categories":[13576],"class_list":{"0":"post-212759","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ibkr-market-insights","8":"category-macro","9":"category-north-america","10":"category-region","11":"category-securities","12":"category-stocks","13":"category-text-articles","14":"category-traders-insight","15":"contributors-categories-interactive-brokers"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A Quick One While He\u2019s Away | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"I apologize for the seemingly cursory nature of today\u2019s piece. 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