How time flies when you are having fun! I can't believe I have to leave to run the Park City Trading and Investment Club as I feel like it is noon. I guess that is what acitve markets do to you. I felt like I was back in Chicago, where you don't even blink, try to take in all of the action and all of a sudden it is around 1pm and the bond markets are closing.
Short futures from yesterday morning and DOUBLE FALL LINE TRADES today in the EUR/USD as finally, the ISM number moved the markets.
BUT, the song remains the same. The markets closed well off the lows of the day. It almost feels like we are guaranteed to go up tomorrow as 3 down days in a row is like the world just fell apart! HA! I am probably going to stay a little short going into the unemployment number, but have definitely lowered my stops.
Let's look at today's action. We had a below expectations ADP report, but that is worth about 5 seconds of my time as they are very inconsistent and not a government release. The we had the headline ISM number, 10% below expectations. The sub-components:
**new orders - a hair below expectations - no biggy
**employment - a few points below expectations - noteworthy ahead of Friday's report
**prices paid - elevated - DUH!
So the markets were flat at the time and the EUR/USD was at its high of the day and then the markets started tanking and those famous inter-market relationships took off: equity weakness, dollar strength. Here is the chart that shows a nice retracement and a DOUBLE FALL LINE TRADE:
Let's hope for more volatility tomorrow. So far this 3 day downmove has created some breathing room for the light protection provided by the bear calls, but as I said, even if we get poor economic data, the markets may be very well "oversold". (That's is sarcastic, but true).
See you all shortly for the Trading Club
Happy Trading and Be Environmentally Cool
Coach Brian
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