Although the jobless claims were in line with expectations as well as manufacturing data the market failed to go thru the resistance and turned down. Europe’s manufacturing data disappointed and tomorrow we will have Labor data out.
The ISM Index remained above 50 number, and although it is trending lower, we most likely will avoid double dip recession.
When the data came out, the market rallied, but the rally faded quickly and and $SPX (SPY) finished in red numbers with a loss of 1.20%. That confirms my expectations that the market will either trend in sideways range, or it may even go lower and re-test $100 level (SPY) or $1000 level if speaking about S&P 500. Ironically better than expected numbers may send the market lower. Let’s see what the next couple days bring up.
Today I purchased my SPY Put position expecting the traders will also get rid of their positions tomorrow to avoid holding over the extended weekend (Monday is the Labor day and markets will be closed). No one wants surprises from Europe over the weekend and that may send stocks even lower. If I make some nice profit on it I may close this position and reopen on Monday.
Happy Trading!
Keep the money moving around. If Paul is short Peter will loan it to him, and vise verse. But one of them needs to make more money to keep it going. and the other one needs to stop spending
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