Monday Morning Musings

Markets are mixed this morning with the S&P 500 slightly negative while the Nasdaq is in positive territory.

There isn't much in the way of market moving news this morning.  Most big companies have already reported earnings, although some smaller names will still trickle in this week.  There also are no economic reports to speak of today.

Apple is trading higher by 2.5% after the International Trade Commission issued an import and sale ban on some Samsung products due to infringement on some AAPL patents.

Asian markets were mostly higher overnight.  Japan's 2Q GDP rose 0.6% vs. 0.9% in the previous quarter.  The results were disappointing, as industrial production declined -3.1%.  Elsewhere Singapore GDP rose 3.8%.

Europe's markets are modestly lower as they near their close.  Swiss retail sales rose 2.3%.

The dollar is higher today but not hurting precious metals.  Gold is nicely higher near $1340 and silver is even higher on a percentage basis.  Oil prices are a bit weaker to $105.40.

The 10-year yield is drifting lower near 2.57%.  And the volatility index is down -4% so far back to the 13.25 level.  Last week it nearly touched the 14 level before running into resistance.

Trading comment: The market appears poised for more consolidation in the near-term.  The S&P 500 is trading below its 20-day moving average, which we haven't seen for awhile.  But as has been the case all year, this market doesn't go down easily.  There aren't really any downside catalysts in the headlines today, but there aren't really any upside ones either.  We are still anticipating more sideways trading as the market again works off its recent overbought condition.  But in this benign market, pullbacks are likely good buying opportunities.

KAM Advisors has long positions in AAPL