Market strategist: Brace for a wild week
Once again, the world's capital markets will be pushed to the brink as lawmakers use the budget as a means to effect their political agenda. Whatever your affiliation (and on Talking Numbers, there are no Blue or Red States - we only care about one color: Green), this whole "government by crisis" approach is not conducive to a calm, slowly rising stock market. D.C. invective is sure to inject some volatility into this week's trading.
There's also some important economic data this wek, including the jobs report which, ironically, may not get released if the shutdown occurs and continues through Friday's release date.
D.C. dysfunction is not exactly new, and the markets have taken previous shutdowns in stride. The SP 500 rallied during both government shutdowns in late 1995.
But this time seems a bit different as a government shutdown could presage more congressional infighting and ultimately result in a failure to raise the debt ceiling limit. In other words, a higher stakes showdown over the creditworthiness of U.S. debt is just around the corner.
So what do the charts suggest? Is this chaos already priced in? Check out the video above and find out.