Business as Usual Amid 2018 Government Shutdown

On Sunday, lawmakers in Washington were unable end the federal government shutdown with immigration issues and DACA at the center of debate. With the first day of trading amid a government shutdown, investors appeared to shrug-off any long-term concerns.

According to the Motley Fool, “…the U.S. government has only been shut down for more than one trading day on three occasions, twice in a short period from 1995 to 1996 and once more in 2013. Amusingly the stock market shrugged off every single shutdown, with stocks gaining all three times”.

Below is a snapshot of some key benchmarks:

The three main indexes quickly moved into green territory after the open and plateaued slightly as of mid-morning. The NASDAQ saw the largest of the gains, clocking in a .5% increase. Utilizing NinjaTrader’s Current Day OHL indicator, chartists can quickly determine the Open (Yellow), High (Green), and Low (Red) of any instrument on any timeframe.

Major Stock Index Chart

Gold Futures, typically considered a safe haven asset, saw a modest increase on Friday as the prospect of a government shutdown loomed. The precious metal kicked off the week with an abrupt .4% move to the downside, however it was quick to recover.

Gold Futures Chart

The CBOE Volatility Index (VIX), largely used as a tool to gauge fear within the market, is heading towards its second consecutive decline loosing roughly 11% since Friday’s open. Utilizing the Regression Channel indicator, included with every download of NinjaTrader, technical analysis can leverage its customizable features to quickly identify trend direction and strength. The dip in VIX further strengthens the notion what Wall St. appears to be unscathed by the 2018 Government Shutdown.

VIX Chart

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