This is going to be a fun week to be a trader. The fairly flat week we just experienced in the overall market has been uninteresting; it may seem as though there hasn’t been a lot to do. However, as there were so many great earning stories this past week, it turned out to be a daily buffet of trading delights. But let’s turn to a much bigger picture: the overall economy.
Don’t get me wrong, there is still some fun to be had in this week’s individual earnings reports as numbers will be released in some very popular names: Coach (COH), LinkedIn (LNKD), US Steel (X), etc. However, the government reports tend to pique market interest as the Gross Domestic Product (GDP) report will kick things off on Wednesday (7/31/13) morning. These numbers will be heavily watched, not only by Wall Street, but also by our friends at the Fed. Their meeting signals a potential ‘quick run’ from the markets, based on the Fed’s comments. And be sure to keep an eye out for the other potential ‘market-moving’ events such as the government releases the July Employment report on Friday (8/2/13) morning.
Hollywood has been searching for a good blockbuster all summer but perhaps they should turn to Wall Street. This is the type of week where keeping a small position is something to consider. Also be sure to keep a close eye on volatility levels, as there is often potential for quick intraday moves in periods of limited liquidity.
Thank you for reading and good luck!