After a very disappointing durable goods release stocks were able to stage a rally throughout the entire morning. Unfortunately, sellers got the upper hand by the end of the trading session sending the major market averages into the red. A positive on the day was volume did not expand upon Friday’s levels, but the price reversal is certainly not a welcomed sign. It appears the financial media is still hung on the timing of the Federal Reserve’s taper and now is beginning to turn to the debt ceiling debate. Mr. Market will this figured out for us and we’ll simply follow along. Financial pundits will debate where the market will go. No one knows the future, stick with the trend.
Certainly being in a neutral market stance is a wise move. Cutting your losses is a must in any market. Exit signals are just as import and entry signals and you cannot waiver. Once you deviate from your trading plan you will get into trouble. Going rogue is not something your account will appreciate when losses pile up sky high. Stick with the trend.
The durable goods orders release was really disappointing. Isn’t QE supposed to boost the economy? Forecasts were for the figure to be down 4.5%, but the reading was -7.3%. Even worse, when you back out transportation the figure was down .06% when expectations were for a positive .4%. Tomorrow we’ll get a reading from the Case-Shiller index. Expectations are for prices to jump 12% year-over-year. It will be interesting to see how higher rates will begin to affect prices. Time will tell.
Not a great start to the week. However, we have tomorrow as a new day. Ride your winners.
