Thursday, August 19, 2010

Jobless Claims, Philadelphia FED Survey, & ES Trade

Jobless Claims
Initial claims are piling up, indicating that businesses are continuing to cut costs. Initial claims came in at 500,000 in the August 14 week for the largest total since November. The four-week average of 482,500 is the largest since December. A month-to-month look shows significant deterioration of 25,000 for a percentage change of nearly six percent. The Labor Department said special factors are playing no part in the data

Philly FED Survey
Manufacturing indications out of the Mid-Atlantic region are decidedly negative for August. The Philadelphia Fed's general business conditions index fell to minus 7.7 to indicate month-to-month contraction in business activity. New orders, at minus 7.1, show a second straight monthly decline in what is a definitive indication of weakness. Unfilled orders extended a run of declines. Shipments also fell in the month as did employment and the workweek. Inventories also fell while delivery times quickened

My ES SPX short finally paid off today. The futures activity was timid before the open. However, the Philly Fed survey sealed the deal for me. Currently, I'm surveying the ES chart for reentry points to short again. In addition, I hold some USO options. I'll keep you posted on that when I make up my mind. Until then, I'll enjoy this one.

Related ETFs: ProShares Ultra S&P500 (SSO:US), iShares Russell 2000 Value Index Fund (IWN:US), ProShares UltraShort S&P500 (SDS:US)

Sports: Carmelo Anthony wants to play in New York as a Knick.

Patrick M. Ambrus
Analyze Capital LLC
Twitter: AnalyzeCapital

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