Wall Street Poised to End in Red on Consumer Confidence
January 31st, 10:17 pm by Lior Alkalay
(eToro Blog) Wall Street is poised to end the last day in January in the Red. Wall Street indices were down after the Conference Board reported that its gauge of consumer confidence fell in January. The confidence index fell to 61.1 in January from 64.8 in December. Consumer confidence dropped as sentiment on business conditions and employment declined from the previous two months. In another report, the S&P Case Shiller index reported that home price index dropped 1.3%. For the year, the index measured a 3.7% drop in home prices. This confirms with the statements from Fed Chairman Ben Bernanke that the housing market remains week and continues to make it difficult for the Fed to rescue the economy.
With Wall Street looking to end the last day in the red, OpenBook trader joker811 has been very actively trading the indices. This traded started shorting the DJ30, NSDQ100 and SPX500 in the European session and booked profits on several trades including a massive 22% profit on a short SPX500 position. This trader focuses on trading in the indices and EURUSD. The trader is up 15% so far this week primarily because of their wins in trading indices.
Wall Street was slumped in the red today with the Dow down 61 points, the Nasdaq down 9 points and the S&P 500 down 4 points at the time of writing this report. While European indices ended in the positive today on progress made at the EU summit, Wall Street reacted negatively to declining confidence and home prices. Traders on OpenBook are primarily short the Dow (DJ30) with average limits at 12,450 and stops at 12,750.
OpenBook trader qur1024 is another trader who has been mixing up his currency trading with indices. This trader too focuses on the EURUSD but also watches the SPX500. The trader allocates 18% of their portfolio to SPX500 and booked several profitable trades in the past several days as high as 20.83%.
Another OpenBook trader who benefited from the EURSUD drop today is trader Zapdos. This trader shorted the EURUSD near 1.3176 and closed it near 1.3123 for a 212% gain. This trader has closed other EURUSD trades as well this morning with gains ranging from 8% to 28%. In addition the trader is holding short positions on SPX500 with floating profits of 17% and 21% respectively.
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