It was a very busy morning for economic numbers: CPI, Jobless Claims, PMI Mfg Flash, Home Sales, Philly Fed, Leading Indicators, and Oil. Germany and France had released some economic data that did not meet expectations which fueled a further sell off beyond yesterday’s biggest down move this year. After the pre-market reports failed to move the markets much, the 10am EST reports (Home sales, Philly Fed, and Leading Indicators) became the focus. It was unclear to me what the stock market reaction would be towards good numbers or bad numbers. Expectations over the Fed changed yesterday as the media focused on growing hawkishness. This makes the reaction to economic numbers a mystery to me right now…
The ES dropped into the DTG 98.50 level and promptly unfolded into a good looking long opportunity. However, it was a coin flip entry since the 10am EST numbers could have taken the market in either direction. A bet that could be worth the risk given the potential for the market to make a decent size move. Fortunately for the more conservative, the ES offered several opportunities to catch the morning up move.
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