After big swing in the market today from negative to positive and then closing flat at the close, same trend is likely to continue tomorrow as well. Since business inventories was 0 for this month, there will be downward revision of US GDP for next month. The stock market doesn't represent the true status of US economy, and it is bias focusing only on Europe.
There is no harm in sitting sideline with "cash in hand" and let this uncertainty storm pass through Nov 23rd. If your playing in this market then you need to be very active and keep looking for right opportunity. There is nothing wrong or right in this market, "Just follow the market".
There are two big event tomorrow, first Greece PM Papademos is proposing his programme in the parliament followed by the confidence vote. The vote is scheduled for 1300 GMT (8 am EST) but may be delayed. Monti was suppose to form government by Friday but since the Italian bond yield hit 7.06 today, the news started pouring out that he is forming Government tomorrow to calm this market.
The economic data to look out are
MBA at 7.00 EST, Positive indicator will be bullish, negative indicator will be bearish. (Big impact on DRV or DRN)
*** CPI M/M change if it comes 0% or lower its bullish sign, while higher then 0% will be bearish sign. (Wall street is expecting QE, if inflation falls there could be possibility of QE3)
Treasury International Capital at 9 EST (Strong reaction in currency market is expected)
EIA petroleum status at 10.30 EST ( Large inventory will be bearish while lower inventory will be bullish)
Oil prices hit $100/ barrel today, which means less people driving for thanksgiving shopping. So i think Wall street game will be on and we might see pullback in oil. So it make sense to buy ERY or short ERX.
Keep an eye on Italian bond yield http://www.bloomberg.com/apps/quote?ticker=GBTPGR10:IND
Its already in Danger zone at 7.07 and if it keep rising then market sell off will continue.
There is no harm in sitting sideline with "cash in hand" and let this uncertainty storm pass through Nov 23rd. If your playing in this market then you need to be very active and keep looking for right opportunity. There is nothing wrong or right in this market, "Just follow the market".
There are two big event tomorrow, first Greece PM Papademos is proposing his programme in the parliament followed by the confidence vote. The vote is scheduled for 1300 GMT (8 am EST) but may be delayed. Monti was suppose to form government by Friday but since the Italian bond yield hit 7.06 today, the news started pouring out that he is forming Government tomorrow to calm this market.
The economic data to look out are
MBA at 7.00 EST, Positive indicator will be bullish, negative indicator will be bearish. (Big impact on DRV or DRN)
*** CPI M/M change if it comes 0% or lower its bullish sign, while higher then 0% will be bearish sign. (Wall street is expecting QE, if inflation falls there could be possibility of QE3)
Treasury International Capital at 9 EST (Strong reaction in currency market is expected)
EIA petroleum status at 10.30 EST ( Large inventory will be bearish while lower inventory will be bullish)
Oil prices hit $100/ barrel today, which means less people driving for thanksgiving shopping. So i think Wall street game will be on and we might see pullback in oil. So it make sense to buy ERY or short ERX.
Keep an eye on Italian bond yield http://www.bloomberg.com/apps/quote?ticker=GBTPGR10:IND
Its already in Danger zone at 7.07 and if it keep rising then market sell off will continue.
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