Now that the Housing results are out, investors have a clearer view of the economy at hand. The housing market has no more confidence.
Tomorrow, we await the new housing sales and the durable goods order. The latter is more important, investors are hoping there is growth in the latter.
Signs that show that this order would increase include Caterpillar CEO saying that July’s order increased by a huge amount, Alcoa’s CEO saying that Aluminum demand will increase even more in the second half of the year, and lastly the price of metal has been going up. Aluminum prices have gone up from 85cts to 95cts from June to July.
This may be the technical rebound, the DOW may rally either for a relief rally, or short covering as traders await the NFP result next week.
Unemployment claims on Thursday will also decide the fate of this relief rally. Investors are hoping to see better numbers, below 500k at best.
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