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Updates 12:45 AM EST - Monday 10/4/21
This coming week
Here's the economic calendar for the full week. The key reports that can potentially move the market are:
Thursday: Jobless Claims
Friday: Job reports
Earnings season is starting up. Here are companies announcing in October. October options expiration is 10/15.
Wall of worry
Market is now getting more nervous about the possibility of stagflation: inflation combined with stagnant growth. The current rise in bond yields is actually a key indication of this. Read more here.
The market is also nervous about the Fed's plan to taper. As we mentioned before, in early October 20218, stocks started a major sell-off due to the Fed raising rates. This lasted until end of 2018. During this time $SPX dropped 20%.
There is a chance the market may continue to be in this nervous mode for a while during this October.
Volatility charts, equity put/call ratio, A/D net issues are all communicating the same message: bearish.
$VXN and $RVX charts are showing similar patterns to $VIX chart below: bearish.
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