Week Ahead 8/19/2024

If there is anything to take away from last two weeks, it would be that the price action volatility across asset classes can be sudden and severe. The economic releases and news are light this week while Jackson Hole conference will be the key focus as is the price action and momentum.

As risks going ahead, the ability for recent equity rally and lower volatility going into September will be a hard task to achieve. Overall, this week is going to be a wait and see week as democratic national convention and Jackson Hole unfold. As vols stand as low as they get at current condition, it would be wise to look at September hedges (buy protection when you can, not when you must).

What we have seen last two weeks in equities is more about positioning and technical factors rather than any one new macroeconomic cycle theme.