Tuesday, February 23, 2010

Durable Goods

February durable goods, January Home Sales, January durable Goods, and Michigan sentiment come out Tuesday through Friday respectively this week. We believe this is a week of potential "triggers" to the market.

We saw it yesterday with the first earnings reports out, but the market held until 1:15 p.m. at lows of 10,333 and highs of 10,473 on the theoretical Dow. Written, this sounds like a large whipsaw day when in reality the market flat lining until the early afternoon.
It will be a trigger that stimulates a short term bias. Following that bias, the reverse bias will then occur, all within a 586 range.
Nice fifty-sixty cent profits were possible on the March 525 call.

Floyd's opinion well stated in Time: http://www.time.com/time/politics/article/0,8599,1964778,00.html

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