Stock market commentary for Feb 22-26
This week is going to be called Ben Bernanke week as he is set to speak on Mon, Wed and Thu. Given that the Federal Reserve raised the discount rate on loans made directly to banks last week, we will be looking to hear any hints of raising US interest rates and his assessment of the US economy. Bernanke is a market mover so be careful when he speaks. Also, there are quite a number of significant US economic data coming out this week. The most important ones you need to be aware of are:
Tues: Consumer Confidence
Wed: New Home Sales
Thu: Durable Goods Orders, Jobless claims
Fri: GDP, Consumer Sentiment, Existing Home Sales
The market had a nice recovery last week from the sell off in the past few weeks and we’re looking for the market to pullback a bit. We’re short term overbought here and we’re not looking to buy anything right now. However, you may want to consider putting on some short positions and you can consider buying the inverse etf’s such as sds, faz, dog and qid.
Have a great trading week and be sure to check back here for any trading opportunities.
