FYI: Indexes were in the red all session on another tortoise like day in the doldrums of late summer. The S&P 500 fell 0.55% while the NASDAQ dropped 0.66%. In economic news housing starts rose to their second-highest rate since the recession on multifamily-home rebound. And industrial production in July saw the biggest one-month gain in 20 months, suggesting that the factory sector could be on the mend.
While the only one who matters is Janet Yellen, there was some non dovish talk out of the Fed… it moved the odds of a rate hike next month up a whopping 2%:
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New York Fed President William Dudley said in a Fox Business Network interview the Fed may raise rates as soon as next month. “We’re edging closer towards the point in time where it will be appropriate I think to raise interest rates further,” Dudley said, citing strength in the labor market. Market expectations for a rate hike next month remained low after Dudley’s interview, however. According to RBS, the odds of a September rate hike rose to 20 percent from 18 percent.
Two hedge fund legends are betting that the market will go down.
“Famous global macro hedge fund manager Paul Tudor Jones, the founder of Tudor Investment Corp, doubled-down on his bet against the stock market, according to his fund’s most recent 13-F filing. During the second quarter, Tudor Investment bought put options on over 5.95 million shares of the SPDR S&P 500 ETF (SPY). The fund now owns puts on 8.34 million shares of the exchange-traded fund, making it the fund’s largest position, the filing shows. Legendary hedge fund manager George Soros also doubled down on his bet against the S&P, buying put options on just over 1.9 million shares the SPDR S&P 500 ETF, making it so he owns puts on just over 4 million shares. It’s his fund’s biggest holding in the filing too.
The S&P 500 remains stuck in this “wedge”; the NASDAQ is at a breakout level but it’s barely budging.
Regards,
Ted
https://www.stocktrader.com/2016/08/16/market-recap-aug-16-2016/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+Stocktrading101+(StockTradingToGo)
