Janet Yellen’s testimony and bad economic data likely to decline US stock markets today
Your Stock Market Prediction for February 27th, 2014:
US stock markets are likely to decline today in reaction to bad economic data and Janet Yellen’s testimony.
All Eyes on Wall Street:
All eyes on Wall Street will likely be focused on today’s bad Jobless Claims report and Durable Goods Orders report, and Janet Yellen’s testimony before the United States Senate at 10:00 AM EST. Jobless Claims spiked by 14,000 claims this past week, and Durable Goods Orders dropped by 1% in January. Investors will likely not approve of the bad economic news, however Janet Yellen’s testimony could turn today into a “bad news is good” sort of day.
Hindsight is a Beach and We’re Playing on It:
This week has been a volatile and flat week, with all three indexes rising barely yesterday and having a great day on Monday. Still no signs of a solid pattern yet, but I would say the bulls are weakening after yesterday’s performance.
Exchange Traded Fun:
Since we are going short today, the following ETFs could be of use to us:
Inverse 1X S&P 500 ETF (NYSEARCA:SH)
Inverse 2X S&P 500 ETF (NYSEARCA:SDS)
Inverse 3X S&P 500 ETF (NYSEARCA:SPXU)
Inverse 1X Dow Jones Industrial Average ETF (NYSEARCA:DOG)
Inverse 2X Dow Jones Industrial Average ETF (NYSEARCA:DXD)
Inverse 3X Dow Jones Industrial Average ETF (NYSEARCA:SDOW)
Inverse 1X NASDAQ ETF (NASDAQ:PSQ)
Inverse 2X NASDAQ ETF (NASDAQ:QID)
Inverse 3X NASDAQ ETF (NASDAQ:SQQQ)
The Long and Short of It:
US stock markets are likely to decline today, however Janet Yellen’s testimony in Congress could give the bulls another shot in the arm.
This stock market forecast is for educational and informational purposes only. It is not intended to be investment advice nor an investment recommendation. Past performance is no guarantee of or indication of future performance and your performance may vary widely from any that may be indicated in this column. There is risk of loss in all investing and trading activities and you should consult your financial adviser before making any investment decisions.
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