MomentumOptionsTrading.com Midday Update for 4/30/14
GDP Disappointments/ Fed Speak Ahead
A number of earnings and economic news events have flooded the market for much of the morning that have the bulls and bears jockeying for position ahead of today’s FOMC announcement. Futures suggested a lower open and trading has been sluggish but the bulls are trying to get the train in second gear as April winds down.
The ADP Employment report came in better-than-expected as 220,000 jobs were added versus expectations for 210,000. That was the good news. The bummer was GDP (Gross Domestic Product) was only up 0.1% versus a forecast of 1.1%.
The Nonfarm Payrolls report on Friday will be more important than today’s results. Wall Street will want to see numbers north of 210,000. We would like to see a print of at least 280,000 jobs added. 300,000 might be asking a bit much.
The tug-of-war will likely get muddy into the close once Fed speak hits the Street but the bulls need to keep their momentum as we wind down the month and head into May.
As we make the turn, the Dow is gaining 10 points to 16,546 while the S&P 500 is advancing a point to 1,879. The Nasdaq is down 4 points to 4,095 while the Russell 2000 is lower by 6 points to 1,115.
We have a number of trades in play that require action as we are taking profits when we can. While we are still betting on the bulls and a possible push to fresh highs, we want to lock-in profits when we can in case the year-long trading range continues.
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