The Tempe Arizona based Institute for Supply Management’s released numbers Tuesday morning that surprised many economists. It showed that manufacturing in the U.S is growing at the fastest pace on almost a year.
The IMS index climbed to over 54% last month. Any number over 50 is a sign that the manufacturing segment of the economy is growing. This was good news as the first quarter results had indicated a slowdown.
One of the strongest showings in the manufacturing sector was auto production, which added 1.12 percentage points to growth, the most since the third quarter of 2009 and accounting for half of the 2.2 percent increase in gross domestic product. Cars last quarter sold at the fastest pace since 2008 according to industry data.
Combined with a report showing manufacturing in China also accelerated, the figures sent the Dow Jones Industrial Average to the highest level since 2007.
Is this the spark that the markets need to break over the top, or is it the top of the market?
No one knows for sure what tomorrow will bring, but we do know if we react to the market and have the discipline that I teach, that we will be able to make successful trades.
To learn firsthand how I would teach you to have the discipline to take advantage of any market condition, speak to one of my financial consultants and sign up to work one-on-one with me here:
Keep those stops tight.
Todd “Bubba” Horwitz
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