The Week Ahead

The holiday shortened week ahead, will be light on high profile earnings as we are unofficially in between earnings seasons at this point. This afternoon, we'll hear from cyber-security provider Zscaler (ZS). On Wednesday morning, Dick's Sporting Goods (DKS) and Dollar Tree (DLTR) will report. to be followed on Thursday evening by Broadcom (AVGO), and DocuSign (DOCU).

The Fed will go easy on us this week. Right now, I only see New York Fed Pres. John Williams speaking and Fed Gov. Christopher Waller speaking, both this Friday. That is after the Beige Book is released this Wednesday afternoon. As for the macro, the calendar is rather crowded, headlined by the release of the BLS employment surveys this Friday.

The question is this... Will traders take this monthly report seriously, now that we know beyond the shadow of a doubt that these monthly surveys are wildly inaccurate and modeled to consistently skew substantially higher than what is the American reality?

Remember, the vast majority of trade across financial markets is done by algorithm. The algos don't care if the numbers are real or fantasy, The algos will react. Keep that in mind. The guys at the point of sale with common sense? Those human traders that would refuse to make purchases or sales at "stupid" prices? They have been put out to pasture at the altar of speed and greed. Speed and greed over fair process in price discovery. You can bet your tail all day, every day. That, however, is the way it is. In 2024.