Wall Street Filled with Greek Worries
January 30th, 8:16 pm by Lior Alkalay
(eToro Blog) The EU summit and Greek debt negotiations filled Wall Street with worries and the Dow is down 85 points, the Nasdaq is down 10 points and the S&P 500 is down 9 points at the time of writing this report. Traders on Open Book are primarily short on the Dow (DJ30) with average limits at 12,450 and stops at 12,750.
OpenBook trader Pumpingstein has already started their trading week with a bang. This trader shorted the DJ30 in two stages. The trader first shorted the DJ30 around 12,604 and booked some profits as the DJ30 fell towards 12,554. Then the trade entered his second short leg at 12,560 and closed that trade at 12,536. This strategy netted the trader 22% and 10% respectively. The trade has opened a third short position at 12,540 and is waiting for their target at 12,426. With the mood firmly bearish on Wall Street, this trader might be able to close out all three DJ30 positions at a profit today. This trader is up 43.9% in the month of January.
The latest economic report from the U.S. showed that personal incomes rose 0.5% in the month of December but that did not translate into more spending. In fact personal spending fell by 0.1%. In a signal that much better things lie ahead for the economy, disposable income rose 0.3%. Inflation rose 0.1% in December as measured by the PCE index. For 2011, inflation measured at 2.4%. The Federal Reserve for the first time set an inflation target at 2% at its policy meeting last week. Federal Reserve official Plosser in his comments today said that he differs on the Fed outlook on the economy. He is more optimistic on the economy than the Fed and expects GDP in 2012 and 2013 be around 3%.
OpenBook trader drangie who we have been following closely was successful today as she traded several profitable positions on the SPX500. This trader who trades the SPX500 primarily in the pre-U.S. session closed several positions in profit by shorting the SPX500 near 1,308 and waiting for her profit targets to hit. This trader usually trades the SPX500 with tight profit targets and has been successful in both buy and sell direction. The trader focuses on trading the SPX500 on her own and copies top trader Hschinner to get exposure to the EURUSD.
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