Tuesday, February 27, 2007

Brief Wednesday Curtain Raiser

8;30 ET we get the final revision of 4th quarter Gross Domestic Product. The consensus estimate is for a big DOWNWARD revision to show growth of 2.3%. This consensus number will be important. Anything too far below will scare the stock market into further worries about corporate earnings; too far above 2.3% and inflation worries will grip the markets. GDP price deflator is expected at 1.5%.

At 9:45 Chicago NAPM data comes our way. Important stuff here as well on manufacturing. It's forecast to bounce back a bit right to the diffusion line of 50 which would indicate tepid growth.

Then at 10, New Home Sales data will be released. An annual pace of just over 1 mln is expected.

So there's a good amount of market moving, or disrupting economic data on the way on Wednesday following the Tuesday slump and dump.

I talked earlier about the stock market, so let's not beat a dead horse.

I decided to take a breather on the gold futures... actually got out at $688 today. Tonight it's down to $671. I'm still holding my large position in GLD and have managed to add a few hundred more shares from trading futures over the last few months to bring my total holdings to ridiculous levels which I'm loving at a cost basis that still below what would be $460/oz! There are a lot of gloaters out there in the blogosphere over the slide in gold today. All I can say is... big mistake. Funny thing is, they don't realize that gold's run to almost $700 was a key signal in alerting to trouble ahead to the stock market - but I digress.

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