US and worldwide stock markets showed positive gains on Tuesday after a number of economic releases showed that the US economy might not be leveling off after all.
Orders for Durable goods, aka, big ticket items had its best month since February and rose more than 1.1% a number that far exceed Wall Street’s expectation of .5%, and helped the S&P 500 Index to move higher by more than 1%. Combine this with the gain from the low yesterday and the index is up almost 2% in less than 36 hours.
Also a government release showed that the housing market is finally starting to show some bright points. Existing home sales have now reached their best levels since the “Great Recession” began more than four years ago.
Compared with a year earlier, May pending sales of previously owned properties climbed 15.3 percent after a 14.7 percent April gain. Contract signings climbed in all four regions, including a 14.5 percent jump in the West and a 6.3 percent increase the Midwest. The S&P 11 stock housing index led the way as climbed more than three percent and reached its highest level in more than four years.
I talk all of the time about market expectation and the past two days have shown that it can have a very positive effect on the market. Yesterday news from Europe was gloomy and the markets responded with a sharp selloff, but when the lows couldn’t be taken out and the US numbers gave the market something to cheer about, we started to rally.
Market expectation is something that gives us both problems and opportunity. I teach my students how to take the problems and turn them into winning trades by reacting to expectation.
Trade the market that you have not the market that you want.
That is what I teach my students, how to have the discipline it takes to react to the market. I have taught hundreds of students the skill to turn problems into opportunity and I can teach you too.
To reach me, and have me instruct you one on one, you can contact one of my financial consultants by clicking here:
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As Always,
Keep those stops tight.
Todd “Bubba” Horwitz
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