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Thursday, September 30

Mid Day trading outlook

What a day.

3 unexpectedly good economic data sent the dow soaring 100 points up. And now we are 50 points down. What’s happening?

Could it be end of September, and pre-earnings season sparking a sharp sell off today?

Financials are once again leading the decline. Materials like FCX are down more than 1% already.

The bears seem to have it today. It seems like 1130 of S&P 500 will face another test soon.

Will it break? We have to wait for tomorrow’s ISM data and also China’s PMI. The HSBC PMI came out well, showing that China’s PMI should be good tonight. However, the result will show that China’s growth has slowed down sharply from the crazy highs in April.

The USD index seems to have rebounded from a double bottom. Target of 80 is in sight.

Metals should start their correction soon. Copper to $3.45.

Other recent stuff

- Spanish downgrade
- Irish troubles
- Japan manufacturing gloom

Happy trading. Following DOUG KASS on a short bias trading season till OCT 10.

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