Friday, September 22, 2006
Up then Down
The markets started the day brightly as hopes of reaching all time highs on the major indexes were strong.
Then the Philly Fed Survey data was released and profit taking was the main story of Thursday. The Philly Fed Survey fell sharply for the month and this renewed fears of a hard landing for the US economy.
The Philly fed Survey is a measure of business activity in the Philadelphia area. It moved into negative territory at -0.4 from a reading of 18.5 in August. This means that for the first time in 3 ½ years, more businesses saw contraction than saw expansion. Within the report, the new orders component, which is a predictor of future business, fell into negative territory as well.
This figure was a bit of a shock and was not expected . This raised fears that maybe the economy is going to experience a harder fall thanpreviouslyy expected.
The SPX fell 7.15 points to 1,318.03 and this helped our position which is still in Green. Our concern (as always on these plays) is to the downside. Our review position to the downside is 1290. We are still along way off from that but lets hope there is some good news coming soon.
Until next time.
Then the Philly Fed Survey data was released and profit taking was the main story of Thursday. The Philly Fed Survey fell sharply for the month and this renewed fears of a hard landing for the US economy.
The Philly fed Survey is a measure of business activity in the Philadelphia area. It moved into negative territory at -0.4 from a reading of 18.5 in August. This means that for the first time in 3 ½ years, more businesses saw contraction than saw expansion. Within the report, the new orders component, which is a predictor of future business, fell into negative territory as well.
This figure was a bit of a shock and was not expected . This raised fears that maybe the economy is going to experience a harder fall thanpreviouslyy expected.
The SPX fell 7.15 points to 1,318.03 and this helped our position which is still in Green. Our concern (as always on these plays) is to the downside. Our review position to the downside is 1290. We are still along way off from that but lets hope there is some good news coming soon.
Until next time.
# posted by Paul @ 4:23 AM 
