Analysis:
Yesterday's Analysis predicted that "the revised Q3 GDP will be 2.4% or higher, as the international trade deficit subtracted less from the GDP due to a weak dollar." Today the revised GDP came in 2.5%. However, the Analysis did NOT predict the North Korean artillery shells landing on a South Korean island, and the market was pulled back by a variety of fear factors. Looking ahead to tomorrow, the Durable Good Orders excluding transportation will show that the US manufacturing sector continues to grow, and Personal Income also grows with improving employment. Finally, the Initial Jobless Claims will stay below 440,000 for a second consecutive week for the first time in many months. As a result, the market will recover most of today's loss while the Euro will have a short-covering rally.
Strategy:
Hold long at 1,197
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