Productivity numbers disappoints, Stochastics down, MACD Down --> $1280 profits
5 min Emini Nasdaq 100
Hi,
Market made a desperate attempt to recoup yesterday's losses but it couldnt break through the moving averages..After forming an ascending wedge, it broke down. This was accompanied by a down turn in Stochastics and Short-term MACD cutting its signal line.. I shorted 1 contract at 1794 ... You can see that price trended downwards and I was safely holding onto profits already..
There was a slight hiccup in the stochastics as it cut up the oversold line... I did not exit and I was still having profits and wanted to see what happen next, I did not expect it to go up and cut my moving averages... As expected, price accelerated the down trend and cut the support at yesterday's closing price... I shorted another 2 more contracts at 1778... and finally only exited at 1762 when stochastics cut up and Short-term MACD cut the signal line. Profits of $1280.
Fundamentals:
The Labor Department reported Wednesday that productivity, the amount of output per hour of work, increased at an annual rate of 1.8 percent in the October-December quarter, down from a 6 percent performance in the July-September period. The slowdown reflected the fact that overall economic activity skidded to a near standstill in the final three months of the year, with the gross domestic product rising at a barely perceptible rate of 0.6 percent.
Labor costs rose by 2.1 percent in the final three months of the year, after having fallen by 1.9 percent in the third quarter and 1.1 percent in the second quarter.
The increase in productivity in the fourth quarter was nearly double what economists had been expecting, while the rise in labor costs was slightly lower than expected. However, analysts cautioned that much of the strength in productivity reflected a sharp drop in the number of hours being worked by the self-employed, while the huge jump in the third quarter reflected the big increase in economic output in that period.