The positive durable goods report, citing new orders up 1.8% for May, fought the May new home sales numbers, below consensus at -0.6% (m/m), as conviction wavered among market movers throughout early trading Wednesday. The crux of the day's market moving news came in the form of the FOMC statement on Federal Reserve policy, where
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A modest trader is a sharp trader and we at Diamond Slice maintain our short strategy, despite the rally extension in U.S. equities . Fundamental economic data continues to show that the broad economy continues to decline despite government stimulus efforts to increase consumers' ability to purchase goods. The home purchase program is extremely attractive
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The appetite of new entrants tip toeing into U.S. equities seems to have worn thin. Following three straight days of declines in the S&P 500 and founded on data citing 38,000 additional weekly jobless claims (637,000 wk 5/9), equities moved slightly higher. The S&P 500 improved by 9 points to 893, drawing bulls to declare
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The Chicago Board Options Exchange Volatility Index, commonly known as the VIX, has secured a spot in the limelight as technical traders and six o'clock news broadcasters have religiously cited the measure throughout the unfolding economic crisis. The index is sometimes referred to as the "fear gauge" as it rises during times of increased market
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Dow components Caterpillar (CAT) and DuPont (DD) are draining the will of investors to remain vested shareholders, as CAT posted its first loss since 1992 and Dupont lowered its 2009 guidance. U.S. stocks weren't the only misfortuned securities Tuesday morning, as crude oil future prices for May and June delivery felt immense downward pressure below
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A sense of "poorness" is becoming more and more relevant to the average American as the degrees of separation between those with jobs and those without is shrinking. While many US consumers remain employed, wages and hours are declining and further dragging down buying power. It is during trying times that consumers turn to credit
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While Financials may have lead us into the current rally and continue to gain steam from FASB Rec. 157 revisions, U.S. Banks are dependant on economic growth for profits. Equities are overbought. Financials may not lead pullback but pessimism towards equities will taint banking sector. Less transparency and rule changes do not warrant further moves
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Close out financial short positions Wednesday ahead of the U.S. House Financial Services committee hearing tomorrow. It is impossible to tell what will be announced concerning "mark-to-market" accounting rules tomorrow. The level of uncertainty is too high to risk holding financial positions of any kind. Diamond Slice Disclosure: **Close SKF**
Citing the General Motors (GM) announced sales more than 30% below their estimates and the continued drop in plans to buy cars in the Consumer Confidence report on Tuesday, it is safe to assume the auto sales numbers will come in below consensus Wednesday and send auto retailers down. Car Max (KMX) is trading more
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Crude began to rally early Thursday as U.S. commodity markets opened on positive news that 2008 Q4 GDP numbers were not as terrible as expected. Futures prices are completely ignoring the stockpiles of crude throughout developed countries, in the Arab world, and floating off-shore in tankers. While WTI crude futures were trading below $45/barrel they were
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