The Market Word - E-Mini Dow
The US is making a modest recovery as shown in each of their daily economic reports! Today US Industrial Production increased 0.2 % in September and as a whole for the third quarter risen 5.1 %. Manufacturing output increased to 0.4 %. US Capacity Utilization increased to 77.4 %. This reading provides insight into future business. As the figure may on occasion dip, it relates to potential recession periods. The moderate growth itself would slowly buoy the indices to climb higher. The "moderate growth" in the US is constantly overshadowed by the contagion fears of the Euro Zone. This condition should keep the E-Mini Dow under pressure for the time being. The next Summit is October 23rd and German Finance Minister Wolfgang Schaeuble had already announced that a definitive solution would not be reached. This is a two-year debt crisis within the Euro Zone that has plagued the marketplace with a play by play of Greece's inability to adhere to austerity measures. The intervention of the troika or European Union, IMF and European Central Bank have been unable to date to resolve the problem. Tax hikes and government cuts have been imposed to try to balance the economy so that Greece may qualify for the loan packages. The Greek debt has been picked up by other countries such as Italy, which could potentially face downgrades due to the debt. It is still undecided as to whether Greece will fall into a managed default or continue to work with austerity measures. The overwhelming sovereign debt crisis hangs over the global marketplace and creates uncertainty and a bleak outlook for the marketplace. It is unlikely that a solution will be found soon.
Technically, the E-Mini Dow is in sell mode on an Hourly Chart according to the Wilder's Parabolic SAR.
Sample Trade Opportunity!
Sell December E-Mini Dow (YMZ11) at $11,419.00. If filled, buy YMZ11 at $11,519.00 Stop or buy YMZ11 $10,419.00 Limit (Target). The risk on this trade is $500.00 plus fees and commissions. The profit potentially is $5,000.00 less fees and commissions. The expiration is December 16th.