Good Economic Data Pushing Great Rotation: Purves

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Dec. 5 (Bloomberg) -- Bloomberg's Scarlet Fu and Michael Purves, chief global strategist at Weeden & Co., put futures in focus in "On The Markets" on Bloomberg Television's "In The Loop."


We have some more volatility as we have a bigger macro calendar.

We have the fomc.

The big picture, though, is that we are having a seismic shift in flows from treasuries into -- this is the rotation that people have been calling for for months now.

Years, really.

Now it is actually happening.

The flows are not enormous but it as inconsistent and that is enough to or will him concerns here.

When you also dig into the economic data, we had a real standout on the gdp today, but half of that was inventory builds.

Actually, a lot of the business expenditures and consumer expenditures were down, too, so if you are janet yellen and the rest of the team in the fed, you step back and say is there really a seismic shift in the economy?

I'm not so sure they're going to react due to what we saw this morning.

You highlighted that your call is for the s&p 500 futures.

What about the cash market versus futures?

In terms of the cash market they will basically track higher.

On our options, we have been very active with upside calls in november and then again selling them earlier this week among which is the natural thing to do going into a heavier macro calendar and with investors taking profits on -- we can't talk about futures without talking about volatility and the visx -- vix.

It actually finished this longest sub-14 close street in 6 years just this week.

We are edging higher as we get into this calendar.

The overall picture for the vix should be subdued.

They can get higher, maybe the 14-17 range from now until your sand -- and to use them, but equities are higher, two.

Does it change when it comes to nasdaq futures?

Nasdaq might outperform here.

When you see what is happening with the end of the year sprint, a lot of the higher data tends to do well and there are upgrades in the stock situations within the nasdaq.

You're seeing a lot of rapid rotation here.

It should outperform in two years and.

Thank you so much.

We are "on the markets" again in 30 minutes.

This text has been automatically generated. It may not be 100% accurate.


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