Friday, March 1, 2013
The major market mover today was a new rumor that a resolution to the impasse over sequestration was in the works. It didn't seem to matter that the resolution never appeared. The market closed near the highs of the day, but the Dow was up only about 35 points.
Thursday, February 28, 2013
Commodities are showing a sharp upturn today on a broad scale. Major movers include all the grains, sugar, cotton, and natural gas. Surprisingly, yesterday there was a report that natural gas discoveries are surging, and that over the next decade, natural gas supplies will rise sharply. But today, the price of gas is up sharply.
Wednesday, February 27, 2013
Dow up 130 points so far. My long trade that I dumped last week would have now made a profit, but I wasn't willing to risk losing $1000 per contract, so I took a $25 loss instead.
Additionally, I've made a handsome profit buying on the reversal last Friday. I've made far more than I lost in that trade.
Often we overlook that by exiting a trade and taking a small loss, we set ourselves up for much larger profits when the target contract returns to the prevailing trend. I have learned to "buy the dip" in a trend when prices drop and then return to trend. We miss the opportunity of buying at a reduced price.
Monday, February 25, 2013
I dumped my trade barely at break-even. It appears that Wall St, even with endless free money from the Fed, is more worried than I thought. Stocks have turned down again, with the Dow off about 67 points. Still, today's news hardly seems like a deal-breaker, so I wouldn't be surprised if we see another rally. I'll be ready!
Between Bernanke's assurance late last week that the Fed will not end its easy money, and rumors that Congress will once again kick the fiscal can down the road, Wall St is roaring along and stocks are already up another 50 points in the first 30 minutes of trading today. Are they about to go parabolic?
Sunday, February 24, 2013
"the HSBC Flash PMI index for February missed expectations of a 52.2 print by a big margin, instead dropping from the final January print of 52.3 to just barely above contraction territory, or 50.4. This was the lowest print in the past four months..."