EXCLUSIVE: TD Ameritrade's Shawn Cruz Says The Data Will Tell If The Market Is Playing Out A Dead Cat Bounce

Benzinga’s Money Mitch had the opportunity to catch up with TD Ameritrade’s head trading strategist Shawn Cruz to discuss the big week ahead for investors in the markets.

As investors assess whether the S&P 500 is playing out a technical dead cat bounce, or if the index has marked an official bottom, Cruz believes the markets will be defined by data that is expected this week.

Earnings reports from four of the five FAANG stocks will help determine which way the market will go, along with a Fed meeting on Wednesday that will deliver either a 75- or 100-basis point rate hike.

Read also: A Complete Guide to FAANG Stocks

Outside of earnings, this is going to be a huge week for the economy, Cruz says, “this is a huge week for headlines, just from what we’re getting from the economy. We get new home sales data, durable goods data, we get GDP data from the second quarter, and on Friday we get employment, price data, and consumer sentiment — all that, with a Fed meeting plopped down in the middle.”

Cruz added that he can see the market break one way or the other depending on how the data comes in.

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In terms of inflationary pressures on the energy market going into the winter, Cruz said the key is going to be what the expectations for supply outlook are.

“Right now, it’s a little up in the air,” he said. “We have an OPEC meeting coming up, Russia just announced they’d be significantly reducing the amount of energy they’re pushing through Europe, and there is production uncertainty in countries like Libya. There’s going to be more demand than there is supply — the question will be is energy so undersupplied that we’ll see prices go back higher.”

For an energy investor attempting to gauge the market, Cruz mentioned focusing on all three energy markets: crude, natural gas and gasoline.

“If it’s just focused on the Europe supply-demand issue, that’ll probably play out more or less in the natural gas market; but if you’re looking at the global economic outlook, I’d say that will probably play out in the crude market,” he noted.

Watch the entire interview, here