Two Ways To Play: Lots of Economic Data, None of It Good Terry Woo Dec 01, 2008 8:30 am |
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Economic Data
The Institute for Supply Management will report numbers for its factory index this morning at 10:00 EST. According to Bloomberg, economists are expecting manufacturing activity in the US to decline at the fastest pace in 26 years. Last month, the factory index fell to 37, compared with a reading of 38.9 in October. Under 50 signals a contraction.
Meanwhile, a separate report from the Commerce Department could show that construction spending fell 1% in October, which could mark the tenth decline in 13 months.
For context on the economy, see Professor Satyajit Das’ The Grand Illusion of Global Liquidity.
From the Bull Pen: Bulls can look to the Gold Shares ETF (GLD). Is it a play off of its 50 DMA? Sell stops can be set 2 points from entry.
From the Bear Cave: Keep in mind December has traditionally been a positive month for equities, so stocks remain skewed to the upside. But bears looking for a downside play can consider AT&T (T) near $30. If and when it reaches that level. Quick Check Around the World
Asian trading closed with the Hang Seng 1.59%, Nikkei -1.35%, Sensex -2.78%, Taiwan 1.30% and Shanghai 1.25%.
Glancing towards Europe, we see the CAC -2.85%, DAX -3.15%, FTSE -2.74%
As of 8:10 a.m. EST, S&P futures are trading -22 to 873, and Nasdaq futures are -24 to 1162.
A Look At Commodities
Crude oil is trading -2.82 to 51.62. Gold is -25 to 790.50. Silver is -0.375 to 9.810 and copper is -0.950 to 161.40.
The dollar index is +0.412 to 86.929.
On the Radar
Economics
10:00 ISM Manufacturing
10:00 ISM Prices Paid
10:00 Construction Spending MoM
Click here for the full trading radar.
Welcome back! Good luck and have a great week!
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