Trading Idea: Sometimes market direction is hard to forecast

Market Talk

Traders should not expect to discover good trades everyday

• The hardest times to trade are the “in between periods” these “in between” periods are when one trend ends and another one begins
• At these potential turning points market volatility increases as investors become more undecided about the future direction of markets
• Since asset prices move based on investor future outlooks, and when those outlooks become less clear markets will trade very erratically until new market trends develop

The current financial trading situation appears to be one of those “in between periods”

Today’s Economic Events

Why durable goods orders are an important indicator

• Durable goods orders can indicate if consumers are ordering durable goods such as manufactured products like cars or kitchen appliances
• If the economy is doing good then consumers could feel more confident buying higher priced items and vice versa
  Today’s US Durable goods orders are in focus and high price action across US assets are expected upon the release.

Traders should be on alert for potential high price action across US indices such as the SPX500, US100 and DOW 30 during the time around the US durable goods report is released.