Market Holding Against Disappointing Data
The Dow moved sideways closing marginally higher by 8 points today as both GDP and Jobless Claims disappoints.
Fundamentals
As I have expected, GDP turned in worse than expected today at 1.8% versus 2.1% consensus. Yes, the poorer than expected result was largely predicted by all the leading indicators so far and by the lower ISM index earlier this month. The much higher than expected Jobless claims was a surprise as analysts were expecting a lower number this time. Jobless claims turned in 424K versus consensus of 404K. All these data were released before market opened today and led to a deeply red opening. However, technical bargain hunters stepped in shortly after and brought the market back up into the green.
Technicals
Even though it is just a sideways day today, the strength displayed at this critical support level does reinforce confidence in the continuation of the current intermediate bull trend. However, we would expect light trading and probably some volatility tomorrow ahead of the long weekend. If you are in stocks, make sure you protect some of your positions using the Protective Put options strategy.
For now, the Dow remains in a short term bear trend, intermediate bull trend and primary bull trend.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
Fundamentals
As I have expected, GDP turned in worse than expected today at 1.8% versus 2.1% consensus. Yes, the poorer than expected result was largely predicted by all the leading indicators so far and by the lower ISM index earlier this month. The much higher than expected Jobless claims was a surprise as analysts were expecting a lower number this time. Jobless claims turned in 424K versus consensus of 404K. All these data were released before market opened today and led to a deeply red opening. However, technical bargain hunters stepped in shortly after and brought the market back up into the green.
Technicals
Even though it is just a sideways day today, the strength displayed at this critical support level does reinforce confidence in the continuation of the current intermediate bull trend. However, we would expect light trading and probably some volatility tomorrow ahead of the long weekend. If you are in stocks, make sure you protect some of your positions using the Protective Put options strategy.
For now, the Dow remains in a short term bear trend, intermediate bull trend and primary bull trend.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
posted by Jason Ng at 8:51 PM
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