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This will be very important week with lots of economic data coming out on Thursday and Friday. Overall the volume is expected very thin in the first week. So, the manipulator are expected to dominate this market. Its very difficult to make any investment because the stock is up 100 points one day with bad news and next day its down 100 point with good news, irrespective of what the economic data comes out. This market isn't safe for long term investor either as Dow, S&P500 are over priced at this time, and there are high chances of losing money if you invest at this level.
Euro zone PMI has been contracting for past 5 month. Today, Euro Zone PMI came at 46.9 Germany (with a manufacturing PMI of 48.4), France (48.9), the Netherlands (46.2) and Austria (49) all saw modest contractions, with PMI readings rising slightly but remaining below the 50 level. Italy (44.3), Spain (43.7) and Greece (42.0) suffered sharp contractions.
ECB purchased 468 million euro bond last week, compared to 19 million euro bond previous week, an increase of 29 times to save Euro from crashing last week. ECB has been doing everything back door to save Euro. ECB and FED should write a blank cheque to Banks and let everyone write the amount of money they want, atleast this would stabilize market for longterm.
The Economic data doesn't matter in this market any more. On good news the market sell off and on the bad news market rallies up. Yet, the economic data for tomorrow to watch are
German Unemployment rate ( 3.55 EST): expected 6.9%, below is bullish sign above is bearish sign.
US ISM Mfg Index (10:00 AM ET): Expected is 53.2, lower will be bearish while above is bullish.
Construction Spending (10:00 AM ET): expected is 0.5%, lower will be bearish while above is bullish.
FOMC Minutes (2:00 PM ET): QE3 will be bullish while no QE3 is bearish sign.
Wait for FOMC minutes and then make any new bullish/bearish investment.
I am all bearish. But it looks like stock market might open high tomorrow followed by sell off at the close.
2 comments:
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