http://www.guerillastocktrading.com/stock-trading/successful-trader-reveals-how-he-makes-80000-a-year-trading-one-stock On Monday, August 16 2010 started out with bad news from Japan of a slowing GDP as weak growth in Japan added onto worries about the strength of the global economy.
This negative news of a slowing down global economy was partially offset as tech stocks lead to the upside on the news that Dell is buying 3Par Inc. for $1.13 billion. Acquisitions are seen as a bullish indicator for a sector for two reasons: first, the company doing the buying means they have cash on hand or a credit line available that enables them to make the acquisition– second, the company being purchased by a larger company usually sees its stock spike as the purchase price of shares in the acquired company are made known. In this instance, Dell agreed to pay $18 per share for 3Par and the stock right away adjusted up to $18 for a quick 86% gain.
Important fundamental economic reports to be released in the near future are:
Aug 24 = Existing Home Sales
Aug 25 = New Home Sales
Aug 25 = Crude Inventories
Aug 26 = Initial Unemployment Claims
Aug 27 = GDP – Second Estimate Q2
Duration : 0:8:39
@JamJells I never …
@JamJells I never said short the market here. In fact, I’d stay far away from shorting this market right now. What I said is that we are in a downtrend and we are most likely going to test the major support zone from 104.38 to 106. I do not recommend anyone shorts this market until we get a break below this support zone with at least one day confirmation. The reason is that we could see a bounce off this support zone.
I feel you are …
I feel you are right; that the SPY will dip and we will have a corrections or semi break down. Short the recent highs and all should be okay for the DT’s here.