Daily Market Color 08/20/2013

Daily Market Color

08/20/2013

Economic Reports & Headlines

Today was another light day for the international and domestic economic calendar. First we will start off with Japan’s All Industry Index for June. The report was disappointing and was practically an additional wave of resistance to Abenomics. On a month over month basis, production activity in the country fell 60 basis points. May’s report showed an increase 110 basis points.

Producer prices in Germany declined 10 basis points in July. The markets were expecting producer prices in Germany to increase 10 basis points on a month over month basis.

Future Reports

Tomorrow should prove to be somewhat exciting for capital markets since we will get minutes from the Federal Open Market Committee’s most recent meeting.

In addition to that, we will get a read on existing home sales in the US. Consensus is calling for 5.150 million homes to be sold in July.

Across the Atlantic in Great Britain, global markets will get a read on manufacturing with CBI’s Industrial Trends Survey for August.

  

Trades

If you love opportunity, then you should love capital markets. You could always find a forthcoming event that market participants find themselves developing an obsession over. It always appears as if the world’s survival is contingent on decisions from the federal government or the Federal Reserve. Maybe I am too optimistic and should heed the warnings from those who are formally educated in finance and economics. Or maybe I am just too opportunistic and like to take risks, because it is events like September’s Fed meeting that creates perfect trading environments. If the Fed tapers, stocks should be sure to sell off. If the Fed does not taper, then stocks should rally. It is a simple trade.