Sunday, August 06, 2006
D Day Cometh
There was a soft payroll number on Friday and a rise in US unemployment. Apparently this fits with the Fed's underlying view that growth is weaking and will bring down inflation gently from its elevated levels.
Who knows if this is right!! The SPX went as high at 1292 early on in the day on this fantastic news of a slowing economy!!! Fortunately the markets saw sense and went down slowly from this high finishing the day at 0.90 lower at 1279.40.
The Fed meet this Tuesday to discuss what they are going to do. The markets think there is an 80% chance a pause is likely.
Our position is still ok but much depends on what happens on Tuesday/Wednesday. We really don't want to see much upside movement beyond 1290. If we finish the week at or below 1275 then we have another winner.
Stop losses are still on for 1305 but if this make you squeamish then maybe have between 1300 to 1302.
I will be looking for another 10 day trade after the Fed announcement so keep your eyes peeled for my email.
Until next time.
Who knows if this is right!! The SPX went as high at 1292 early on in the day on this fantastic news of a slowing economy!!! Fortunately the markets saw sense and went down slowly from this high finishing the day at 0.90 lower at 1279.40.
The Fed meet this Tuesday to discuss what they are going to do. The markets think there is an 80% chance a pause is likely.
Our position is still ok but much depends on what happens on Tuesday/Wednesday. We really don't want to see much upside movement beyond 1290. If we finish the week at or below 1275 then we have another winner.
Stop losses are still on for 1305 but if this make you squeamish then maybe have between 1300 to 1302.
I will be looking for another 10 day trade after the Fed announcement so keep your eyes peeled for my email.
Until next time.
# posted by Paul @ 4:59 PM 
