Written by Gary
Premarkets were up +0.2% after the US GDP came in at 3.9% and the SP500 gaped up at the opening to set another new historic high while the DOW remained 40 points below its high mark. Opening volume was also a dichotomy with very high red volume holding back the BTFDers.
By 10 am the averages had fallen off the opening highs leaving the large caps flat and in the red and the small caps were following closely on moderate volume. Heavy red red volume spikes are signaling some investors to exit for now.
It would appear we are back to where good news is bad for the markets. Some analysts are stating that the this bull market still has some steam and any pull back now is going to be an opportunity for some buying opportunities.
US economy grew at 3.9 percent rate in July-September quarter, stronger than initial estimate
WASHINGTON (AP) – The U.S. economy grew at a solid 3.9 percent annual rate in the July-September period, even faster than first reported, giving the country its strongest six months of growth in more than a decade.
The third quarter growth rate climbed from an initial estimate of 3.5 percent because of greater spending by consumers and businesses, the Commerce Department reported Tuesday.
The figure followed a 4.6 percent surge in the spring, which resulted in the biggest consecutive quarters of growth since 2003. Analysts believe growth could slow to around 2.5 percent in the current quarter but then accelerate again in 2015.
They expect growth of around 3 percent, representing a sustained acceleration in activity six years after the Great Recession.
Our medium term indicators are leaning towards sell portfolio of non-performersat the opening and the short-term market direction meter is bullish. We remain mostly conservatively bullish, neutral in other words. Right now now I am getting very concerned any downtrend could get very aggressive in the short-term and any volatility may also promote sudden reversals. The SP500 MACD has turned flat, but remains above zero at 25.78. I would advise caution in taking any position during this uncertain period and I hope you have returned your ‘dogs’ to the pound.
