At least that is what analyst's are looking for this coming week. GDP numbers are due Thursday. This should show the first positive quarter of growth indicating the end of the recession is true. 3% or better is the number, last quarter was -0.7. Wednesday should provide an indication if the durable goods number is higher than expected or at least in-line with expectations. This coupled with American company's strength from overseas sales should drive the 3% GDP growth fairly easily.
Now the concern is are we making our money overseas from a declining dollar and will that drive US investor's to overseas markets? My long-term investments that are in foreign owned companies are up almost 80% ytd as compared to my US value which is closer to 40%.
As volitile as this market has been looking at some spyder ETF's and trading the options on specific sectors may be a smarter move given this weeks impact of durable goods and GDP.
Trading the DIA may be a good money maker but I would keep the sell limits tight and not get greedy.
If tech turns around, especially after the strong top and bottom line reports of some big players the QQQQ's may be another option as well.
I think this week's reports will be a make or break event for the current rally, so watch it close and place trades appropriately, if the numbers are bad pick up some DIA, QQQQ or SPY puts.
One way to take advantage of this is to set up trade triggers with TDAmeritrade. If the market takes a drop as the numbers are released and the index drops set up a buy of PUTS at/near the money and take an immediate market order. First time you will ever hear me say to use a market order, but if the numbers are bad then it will drop fast. Reverse the logic to take advantage of strenght if numbers are good.
Recommend looking into Trade trigger's if you have never used them before.
As always, Happy Trading!
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