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Two Ways To Play: Lots of Economic Data, None of It Good


Strengthen your portfolio in good times and bad.


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


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!

No positions in stocks mentioned.

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