I got the right prediction that the stock market will crash ahead of time http://www.freefdawatchlist.com/2011/09/market-has-crashed-as-predicted.html
Stock market came out from the bottom but again crashed out because of weakness in copper and Chinese data.
DJI has resistance at 10597. Currently at 10913
S&P has resistance at 1101. Currently at 1131
Nasdaq has resistance at 2331. Currently at 2415.
Next week is very crucial and there will be lot of bumpy ride with lots of economic data comming out. It will decide whether US is in recession or not.
Here is how i think this market should be played. Again in this volatile market its better to keep cash in hand then lose money. Remember VIX above 40 is not a good time to invest for longterm. If it falls below 30 then you can invest in any stock based on the fundamental and hold it for long term.
By Sunday, or early Monday we will come to know the fate of Greece. Also if ISM Mfg index is above 50, then I am planing to short VXX or VIX or buy put option and Call option on DIA, SPY, and TNA on Monday and Thrusday.
For Friday, i would rather keep cash in hand wait for the non farm payroll and take my position accordingly.
Today I have bought ERX at $ 31.27 and planning to hold to long.
Below are the important date and timing for this coming week. Bookmark this page for reference.
Monday October 3rd
10. EST ISM Mfg Index : Any number greater then 50 is positive sign.
10. EST Construction spending. Any number less then -0.3% is positive sign.
Tuesday 4th
10 EST Ben Bernanke speaks before bipartisan congressional panel on the U.S. Economy
10 EST Factory order : any number above 2 % is positive sign.
Wednesday 5th
8.15 EST ADP : any data above 90000 is positive sign.
10 EST ISM Non mfg Index : any data above 50 is positive.
Thrusday 6th
7.45 EST ECB annoucement : Rate cut is positive sign.
8.30 ESt Jobless claim, any data less then 400k is positive.
Friday 7th:
8.30 EST Employment Situation: Non farm payrolls: any number above 50000 is positive sign last month it was 0. & unemployment rate : at 9.1% is positive, expected is 9.2%
The inspectors from the European Union, the International Monetary Fund and the European Central Bank--called the troika--are racing to reach a deal with Greece by late Sunday ahead of a meeting of European finance ministers in Luxembourg Oct. 3. Greece on Monday is due to release its 2012 draft budget and outline its mid-term plans to close its budget gap in 2013 and 2014.
ECB to cut rate on October 6th from 1.5 percent to 0.5
The Joint Select Committee on Deficit Reduction, also known as the “Super Committee” was formed as part of the Budget Control Act of 2011 that passed in August to raise the nation’s debt ceiling. The Committee has begun meeting as part of the process to decide on an additional $1.5 trillion in deficit reductions.
October 14, 2011:Deadline for House and Senate committees to give the Super Committee recommendations on how to reduce the deficit.
November 23, 2011: Deadline for the Super Committee to draft and vote on legislative language that details its recommendations.
December 23, 2011:Deadline for Congress to cast an “up or down” vote on the Super Committee’s bill, with no option for amendments.
If the Super Committee fails to produce a bill, or the bill does not successfully pass, sequestration will be triggered, forcing across-the-board spending cuts of $1.2 trillion. Sequestration would include up to a 2 percent reduction in Medicare payments, but does exempt Medicaid, Social Security and other safety net programs from reductions.
Get ready for more bumpy ride this week.
Stock market came out from the bottom but again crashed out because of weakness in copper and Chinese data.
DJI has resistance at 10597. Currently at 10913
S&P has resistance at 1101. Currently at 1131
Nasdaq has resistance at 2331. Currently at 2415.
Next week is very crucial and there will be lot of bumpy ride with lots of economic data comming out. It will decide whether US is in recession or not.
Here is how i think this market should be played. Again in this volatile market its better to keep cash in hand then lose money. Remember VIX above 40 is not a good time to invest for longterm. If it falls below 30 then you can invest in any stock based on the fundamental and hold it for long term.
By Sunday, or early Monday we will come to know the fate of Greece. Also if ISM Mfg index is above 50, then I am planing to short VXX or VIX or buy put option and Call option on DIA, SPY, and TNA on Monday and Thrusday.
For Friday, i would rather keep cash in hand wait for the non farm payroll and take my position accordingly.
Today I have bought ERX at $ 31.27 and planning to hold to long.
Below are the important date and timing for this coming week. Bookmark this page for reference.
Monday October 3rd
10. EST ISM Mfg Index : Any number greater then 50 is positive sign.
10. EST Construction spending. Any number less then -0.3% is positive sign.
Tuesday 4th
10 EST Ben Bernanke speaks before bipartisan congressional panel on the U.S. Economy
10 EST Factory order : any number above 2 % is positive sign.
Wednesday 5th
8.15 EST ADP : any data above 90000 is positive sign.
10 EST ISM Non mfg Index : any data above 50 is positive.
Thrusday 6th
7.45 EST ECB annoucement : Rate cut is positive sign.
8.30 ESt Jobless claim, any data less then 400k is positive.
Friday 7th:
8.30 EST Employment Situation: Non farm payrolls: any number above 50000 is positive sign last month it was 0. & unemployment rate : at 9.1% is positive, expected is 9.2%
The inspectors from the European Union, the International Monetary Fund and the European Central Bank--called the troika--are racing to reach a deal with Greece by late Sunday ahead of a meeting of European finance ministers in Luxembourg Oct. 3. Greece on Monday is due to release its 2012 draft budget and outline its mid-term plans to close its budget gap in 2013 and 2014.
ECB to cut rate on October 6th from 1.5 percent to 0.5
The Joint Select Committee on Deficit Reduction, also known as the “Super Committee” was formed as part of the Budget Control Act of 2011 that passed in August to raise the nation’s debt ceiling. The Committee has begun meeting as part of the process to decide on an additional $1.5 trillion in deficit reductions.
October 14, 2011:Deadline for House and Senate committees to give the Super Committee recommendations on how to reduce the deficit.
November 23, 2011: Deadline for the Super Committee to draft and vote on legislative language that details its recommendations.
December 23, 2011:Deadline for Congress to cast an “up or down” vote on the Super Committee’s bill, with no option for amendments.
If the Super Committee fails to produce a bill, or the bill does not successfully pass, sequestration will be triggered, forcing across-the-board spending cuts of $1.2 trillion. Sequestration would include up to a 2 percent reduction in Medicare payments, but does exempt Medicaid, Social Security and other safety net programs from reductions.
Get ready for more bumpy ride this week.
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