The S&P 500 Index gave up 1.9 points, closed at 1158.06, but remains well north of its 10-day moving average. We have a muted day on Wall Street because the of September jobs report coming up tomorrow, investors also cautious as companies begin reporting third-quarter financial results.
"Caution" was the keyword on Wall Street today, with traders holding their breath ahead of the highly anticipated reports.The government will unveil its nonfarm payroll numbers for September early tomorrow morning. With these major market catalysts just over the horizon, traders seemed relatively unmoved
We have a overbought market and when the market is overbought, traders have ton of reasons to sell their stocks, especially when there is a significant report coming up like the one tomorrow. If you are smart traders, you shouldn't hold your position, especially the long position even though we have a short term uptrend.
As I mentioned couple days ago, market may find a short term top if traders feel it is the right time to take profit.
The market’s looking for a Fed sign of a second round of quantitative easing. However, there is a great deal of legitimate debate still to take place within the FOMC on the subject of quantitative easing, and the pros and cons and costs and benefits of further monetary accommodation. The ‘Legitimate Debate’ is that For $2 trillion, the Fed may buy little improvement in growth, employment or inflation over the next two years.
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