Scott Burrill - Market Notes

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A Jam-Packed Week

Oct 27, 2019

Good Evening:


Markets grind toward all-time highs as volatility continues to contract while multiple catalysts loom. That's a mouthful, yet in reviewing the Weekly SP500 Option Implied Move, I was surprised by the low expected move in light of this week's major potential catalysts. However, with Implied Correlation clearly focused on individual issues, barring a shock, persistence beats resistance.

The weekly implied move is only + / - 33 points or an expected range of 3055.96 to 2989.14.


The bias and trends remain up.


Potential catalysts are massive from major earnings announcements, key economic releases including the closely watched employment situation report, and of course, the FOMC Meeting and Chair Powell's Press Conference, not to mention Tweets, Trade and Impeachment.

The Fed is all but certain to cut rates, so the focus will be on the policy statement and also clarity around the repo market interventions.


Updated Levels.


Have a great week.
All the best,
Scott


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