US has finally hit its debt ceiling of 15.194 trillion dollar. Overnight it was increased to 4 billion, which its likely to hit soon. US debt to GDP ratio is over 100%, now in line with Portugal.
It was yet another day of bad news, but the stock market closed in positive territory. Today, MBA data showed decline in purchase index of new home by -9.7%, MBA application were down -4.1% as compare to prev week -2.6% Redbook showed decline of 2.1% for December compare to November. Factory order came at 1.8% boosted by strong aircraft order. Non durable good excluding aircraft was down 1.2% as compared to 0.9 % in October. Inventories rose 0.5 percent which, when compared to the weakness in shipments, drives the inventory-to-shipment ratio up one tenth to 1.34. Since Inventories are up, US GDP will show further decline in January report.
Right now market is very unpredictable, it goes up for no reason with no news/bad news and comes down on better news. It isn't safe for investment. France rating downgrade expected by this Friday.
The economic data to focus for tomorrow are even though it doesn't matter anymore (EST)
02:00 German Retail Sales (MoM) expected is 0.1% (Bullish sign if above and bearish if its below)
02:45 French Consumer Confidence expected is 77 (Bullish sign if above and bearish if its below)
Tentative Spanish Business Confidence expected is -18 (Bullish sign if above and bearish if its below)
Tentative Spanish Industrial Production (YoY) expected -6.6% (Bullish sign if above and bearish if its below)
04:00 Italian Monthly Unemployment Rate expected is 8.5% (Bullish sign if above and bearish if its below)
04:00 Italian Quarterly Unemployment Rate expected is 8.10% (Bullish sign if above and bearish if its below)
07:30 Challenger Job Cuts (YoY) expected is -12.8% (Bullish sign if low and bearish if its above)
08:15 ADP Nonfarm Employment Change expected is 175K (Bullish sign if below and bearish if its above)
08:30 Initial Jobless Claims expected is 381K (Bullish sign if below and bearish if its above)
08:30 Continuing Jobless Claims expected is 3573K (Bullish sign if below and bearish if its above)
10:00 ISM Non-Manufacturing Index expected is 53.0 (Bullish sign if above and bearish if its below)
10:30 Natural Gas Storage expected is -81B (negative inventory is bullish and positive inventory is bearish)
11:00 Gasoline Inventories expected is 1.0M
(negative inventory is bullish and positive inventory is bearish)
11:00 Crude Oil Inventories expected is -1.2M (negative inventory is bullish and positive inventory is bearish)
11:30 Chain Store Sales (YoY) expected is 3.2% (Bullish sign if above and bearish if its below)
You can short/ buy put in Goog, V, MCD, FOSL, DIA, SPY, NFLX
The market is expected to open low and likely to sell off.
No comments:
Post a Comment