MysteryTraderBlog.com: Good News/Bad News

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One whose identity is unknown and who arouses curiosity.

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Good News/Bad News

First, the good news.
Israel says it does not plan to target Hezbollah's sponsors, Iran and Syria. According to CNN, Israel's UN ambassador said, "This is an operation which is very measured, very local."
Companies reporting strong earnings comparisons may get some play, but I think strong earnings are old news after years of strong earnings.
Now the bad news.
The CPI core rate (ex-food and energy) rose at a 2.6% annual rate, which is more that the Fed likes. Bonds are under pressure: prices are falling and yields are rising.
Housing Starts fell 5.3%, so the economy is heading down.
Disappointing earnings from YHOO probably will be a drag on tech stocks.
Stagflation is a tough problem, and that looks like the path we are on.
I’m still Bearish, but I know that reversals are possible in such a highly news charged environment. I plan to trade with maximum flexibility in days ahead.

Posted by MysteryTrader on July 19, 2006 03:36 AM | Permalink

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About Me:

Almost nothing is known about the Mystery Trader. If there were anything much known, he or she would not be such a mystery, would he or she?

We can say only this: the Mystery Trader has been trading for a long time, has learned a few things, mostly the hard way, has traded all kinds of crazy financial instruments, has made AND LOST an awful lot of money, and has not died broke well, not YET anyhow, but there is still time for that.

The Mystery Trader writes these impressions and thoughts as a kind of an uncensored stream of consciousness journal or diary, largely for his or her own amusement, but also hoping these thoughts might help readers somehow, perhaps occasionally, prevent them from doing something stupid.

The Mystery Trader hopes that his or her thoughts might help YOU keep from losing YOUR shirt in the world's biggest casino. The financial markets are notoriously tricky and have ALWAYS been loaded with disinformation, deception, raw deals, chicanery, and outright criminal theft. Unfortunately, little of this bad behavior is caught and punished because the financial markets are too big and chaotic.

The Mystery Trader certainly and explicitly does NOT recommend that you blindly accept any ideas presented here or take anything expressed here at face value as actual fact. On the contrary, if anything, the Mystery Trader hopes that this blog might encourage you to think entirely for yourself and develop your own UNcommon sense. Be careful, have fun, and good luck!

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