Analysis:
Yesterday's Analysis predicted that "the Empire State Manufacturing Survey will be positive to the market, but the market will retreat on concerns about the impact of higher long-term interest rates." Today the better-than-expected Empire State Manufacturing Survey initially drove up the market, but the market settled lower while the interest rate on the T-note rose to 3.53%.
Looking ahead to tomorrow, the lack of demand in the Spanish bond auction will rekindle the concerns about European sovereign debt, this time that of Europe's fourth largest economy, causing the Euro to weaken towards $1.31. The Housing Starts will be no greater than 545,000 due to increases in mortgage interest rates. The Initial Jobless Claims will reverse the recent downward trend and rise towards 430,000. The Philadelphia Fed Survey will decrease from 22.5 in October. As a result, the market will continue its slide towards 1,228.
Strategy:
Hold short at 1,217
No comments:
Post a Comment