Durable Goods Orders came in far worst than expected and the market staged a rally. We continue in the non-sense trading methodology where bad economic news are followed by gains in the stock market. As Bloomberg mentions, investors speculated whether a report showing durable-goods orders fell in July would delay stimulus cuts. Since stocks rally in the face of bad economic news due to a stimulus cut delay, common sense led us to conclude that QE has artificially created a bubble. Under normal circumstances stocks should decline after such a horrific economic news announcement…….. At the last 30 minutes of trading the market returned all of the advance to close 0.05% negative as Reuters announced the Treasury will reach its debt limit in mid-October as well as jitters over Syria.
Today´s Profit USD 345 (Portfolio Size: USD 25,000)
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