Durable goods Up,Home Sales at RECORD HIGH, So market goes UP? WRONG!, Short --> $1160 profits
5 min Emini Nasdaq 100
Hi,
Good fundamental news came out today.. Durable goods data were up and new home sales jumped by 16.2% in April.. When new home sales data were released at 10:00 am. there was a knee-jerk reaction to the news and price shot up..I missed the trade, for a moment, I really thought that the uptrend was almighty and never failing.. we are going to have another all time high again.. But WAIT!
Prices hit my red moving average and started to fall... Shocastic was telling me the same thing too.. I don't care whether the fundamentals are good or if there are good news or not. My TRADER INSTINCT tells me to SHORT! NOT LONG. If market really took those data seriously, price action would be much more swift and we would have broken the moving averages instantly. I went short 1 contract at 1912.. and another 2 contracts at 1905.. At 1905, I was convinced that the market is not going up ( if not going down).
Smooth sailing after that.. all the way till 1888 when a white hammer candlestick appeared and I decided that I've earned enough --> $1160 profits.
Market kept on going down after that, but I missed it.. but it's ok.. I played by my signals and won. That's what counts to me.
Fundamentals
April durable goods new orders were up 0.6%. That was close to the expected 0.9% gain for this volatile number. March was revised upwards to a 5.0% gain. The component breakdown was encouraging as most key categories showed decent growth over the past two months. Business investment may be picking up after a soft period for six months.
New claims for unemployment for the week ended May 19 stayed at a low level of 311,000. Labor market conditions remain tight.
Home Sales Numbers
The Commerce Department reported Thursday that sales of new single-family homes jumped by 16.2 percent in April to a seasonally adjusted annual rate of 981,000 units.
That was the biggest one-month sales gain since a 16.4 percent surge in April 1993. Even with the increase, however, sales are 10.6 percent below the level of a year ago.
The median price of a new home -- the midway point between the costliest and cheapest -- fell to $229,100, a record 11.1 percent below the March level. The price was 10.9 percent below the level of a year ago, the biggest year-over-year price decline since 1970.