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Weekly Trading Outlook: Dollar, Bonds Support Short-Term Equity Correction

|Includes: GLD, SPDR S&P 500 Trust ETF (SPY), TLT, USL, UUP

I's a data-heavy week we're heading into, and our previous forecasts "S&P 500 Lacks One Leg; May Stumble" and "Oil and Dollar: Harbinger Of Things To Come?" are coming to fruition. The weakness and strength in risky (i.e. stocks and oil) and risk averse (bonds and US dollar) assets, respectively, seem to be pointing to possible disappointing economic readings. Most important of all, watch for a possible breakout in bonds, a very high probability at this point. Stay light into equities but watch for buying opportunities near the channel range lows. We still maintain our range trading strategy recommendation.

Data this week:
Sept 29 Consumer Confidence
Sep 30 GDP Final
Oct 1 Personal Income/Spending, ISM Index, Auto Sales
Oct 2 Nonfarm Payrolls, Unemployment Rate