At 8:30 am EST, the first quarter GDP revisions were released which showed the economy grew by just 1.8 percent. This number was sharply below the 2.2 percent growth estimate that economists had expected. The S&P 500 e-mini futures are trading higher on the day by just 1.00 point to 1317.50 per contract. Weekly jobless claims also increased by 10,000 to 424,000 new initial claims. This is also a disappointing number for the markets which had expected 405,000 new claims. Believe it or not, the poor economic data could be good for the stock market this morning. When the economic data is so poor the U.S. Dollar Index(DXY) will usually decline or sell off. That is exactly what the U.S. Dollar Index is doing this morning, the DXY is declining lower by 0.54 cents to $75.40 per contract. When the dollar declines the major stock indexes will usually inflate and trade higher. It is important to note that the weak dollar has not had as much effect in lifting and inflating the markets that it has had in the past. This is certainly a change in character and traders should be aware of that.
Market is doing as I projected yesterday be long and strong.
Nice. This “inthemoney” guy said yesterday that weak volume into the long weekend combined with Uncle Ben’s POMO would make it easier to control the market up. I bought a few Spy puts(June $133) yesterday morning. Set my target for $133.60. Didn’t get there yet. I may take half of today and the other off tomorrow.
I’d say you have a good play there because I do believe it will end green tomorrow also. Might not be a large profit with your play but a profit is a profit in this dam market. GLTY
I cashed out at $3.70 for about a 27% gain. I leave for Orlando tomorrow afternoon and didn’t want to have to deal with it. I’m very happy with the gain. Have a great weekend.
Nice. You have a great weekend too. Indy 500!