May 30th Watchlist
Nikkei posted a big drop in the overnight session and then rallied significantly off a rumor concerning a big pension fund now being able to move into their equities markets. Futures on the home turf are modestly higher but are now slightly weaker after the GDP & Jobless Claims figures came out at 8:30 AM. Both numbers came in under expectations and investors are considering what would be the measured reaction from the FED. Judging by the premarket action, today looks to produce yet another choppy session for intraday traders to wrestle with. Keep in mind there is Home Sales data coming out at 10 AM so watch for the reaction from the broad indexes.
Costco (NASDAQ: COST) reported earnings well above expectations, posting a 19% gain in 3rd quarter earnings and a sharp increase in sales. Gold and Silver are continuing their retrace higher this morning which many traders are saying could signal further weakness in the equities markets.
Trading this type of environment is never easy folks, which is why I advocate the concept of NOT trading. Also writing options can help provide a solid strategy during periods where the lack of volatility severely discounts one's ability to extract profits by buying calls & puts.
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