Friday, October 19, 2007
Pay Day!!
Our October play looks like it will be a winner today!!
The SPX closed Thursday at 1540.08 which is well within our green zone and with the futures pointing to a big open down today (as I type) this play will end in a win.
After an extremely volatile session line the markets ended nearly flat. The Dow ended the session with a loss of 3.58 points to close at 13,888.96. The SPX gave up just 1.16 points closing at 1,540.08.
Oil’s brief reprieve on Wednesday was quickly forgotten with crude closing at another record high of $89.47. Traders continue to buy on the view production in Iraq could be hurt in the future and on a weak dollar. Analysts looking for $100 oil prices are once again making noise. The bulls out there can only be hoping this doesn’t happen. Not only would it really hurt consumer sentiment, but this would also lead to a likely slowdown in spending and increase inflationary pricing pressures.
Economic news was highlighted by comments made by Cleveland Fed President Sandra Pianalto. Ms. Pianalto stated that the Fed is still unsure of what needs to be done at the Oct Fed meeting. This means that data in the next two weeks will be key in the decision making process. Currently, Fed fund futures are pricing in about a 50-50 chance of a rate cut.
So it seems record oil prices and poor earnings are going to cause some havoc on these markets....and with a Fed meeting at the end of October we still need to be cautious next month.
Until next time.
The SPX closed Thursday at 1540.08 which is well within our green zone and with the futures pointing to a big open down today (as I type) this play will end in a win.
After an extremely volatile session line the markets ended nearly flat. The Dow ended the session with a loss of 3.58 points to close at 13,888.96. The SPX gave up just 1.16 points closing at 1,540.08.
Oil’s brief reprieve on Wednesday was quickly forgotten with crude closing at another record high of $89.47. Traders continue to buy on the view production in Iraq could be hurt in the future and on a weak dollar. Analysts looking for $100 oil prices are once again making noise. The bulls out there can only be hoping this doesn’t happen. Not only would it really hurt consumer sentiment, but this would also lead to a likely slowdown in spending and increase inflationary pricing pressures.
Economic news was highlighted by comments made by Cleveland Fed President Sandra Pianalto. Ms. Pianalto stated that the Fed is still unsure of what needs to be done at the Oct Fed meeting. This means that data in the next two weeks will be key in the decision making process. Currently, Fed fund futures are pricing in about a 50-50 chance of a rate cut.
So it seems record oil prices and poor earnings are going to cause some havoc on these markets....and with a Fed meeting at the end of October we still need to be cautious next month.
Until next time.
# posted by Paul @ 3:46 AM 
