Traders Lifestyle

There are good days trade, and there are days when it’s better take the day off and enjoy the privileges of a Traders Lifestyle.  Facing a 3-day weekend with the possibility of 200 billion of new tariffs levied against China new week hanging over the markets head, today might be just such a day!

I have personally taken profits and trimmed my holdings all week to reduce risk heading into the long weekend.  I hope many of you have done the same, and honestly, I hope many of you are not even around to read this morning note because you have already taken off for the weekend.  If you are still here, keep in mind volumes could become very light and choppy after the morning rush.  If a trade deal with Canada come to fruition, we will likely see a flurry of activity but keep in mind profit-taking, and risk reduction will be on the mind of a good many traders today.   Plan your risk carefully and enjoy the last official days of summer this Labor day weekend!

On the Calendar

The last day of August Economic Calendar gets going with Chicago PMI at 9:45 AM Eastern.  Forecasters suggest a slight pullback from a very high level to 63.8 vs. the 65.5 reading in July on PMI.  Then at 10:00 AM Consumer Sentiment according to consensus will slightly increase to 95.5 in August.  There are 6-bond settlements today and the Baker-Hughes Rig Count @ 1:00 PM to close out the August calendar.

Today the Earnings Calendar is very light showing only five companies reporting results.  They are BFRA, CANF, RENN, RUBY & BIG to finish up the August earnings.

Action Plan

Asian and European markets seemed to follow the US turn lower yesterday with across the board losses in their major indexes.  Surprisingly US Futures are not suggesting a substantial gap down but instead indicate just modest decline at the open.  The Bulls have certainly been tenacious this week, and perhaps they have still have the energy to close this last trading day in August on a high note.  Or maybe they are holding out and hoping the trade agreement with Canada will get announced sometime before it Friday deadline expires.

Unfortunately, as we slide into a 3-day weekend and a 200 billion tariff threat against China next week could also have the bears on a prowl.  Remember this is the get-a-way day, and a lot of traders will abandon their computers in favor of celebrating Labor Day and the lasts official days of summer.  Volume could be light and very choppy after the morning rush.  Plan your risk carefully as anything is possible over the long weekend.  Have a wonderful weekend everyone!

Trade Wisely,

Doug