The market opened higher and traded mostly sideways closing 0.34% positive (NDX-100), while WTI oil closed 1,23% lower. Today´s trading environment favored our strategy of shorting on spikes. On the economic front both the Chicago Fed Index and the Existing Home Sales reports came in lower than expected. The 30 year mortgage rate spiked to 4.07% and home prices have had a significant increase in prices as well, which could be the reason investors are refraining from investing in homes. We maintain the view that the stock market is in overbought territory and caution is warranted as a correction of approximately 3% to 5% could be around the corner.
Today´s Profit USD 442 (Portfolio Size: USD 25,000)
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