Sign inMysteryTrader's Commentaries
SELL!
Stock prices gapped higher again, this time on news that Q2 GDP grew at a 2.5% annual rate, slower than the generally expected 3.0%. This news encouraged widespread hopes of a soft landing for the U.S. economy, an earlier end to the Fed’s relentless increases in interest rates, and even a pause at the Fed’s August 8th meeting.
On the other hand, core inflation rose at a 2.9% annual rate--more than the Fed likes and the highest in 12 years. It is not at all clear which worries the Fed more, slowing economy or rising inflation. It will be a tough call.
Also, there appears to be little reason to hope for a any diplomatic breakthrough in the Middle East. So, there remains substantial risk of a widening war and possible disruption of oil supplies.
I am using upside reactions to news as opportunities to SELL!
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