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The day begins with lots of volatility in the markets with the speculation of a possible yet improbable announcement of QE3 from Ben Bernanke in the Jackson Hole conference.
The macro data released today is once again, dissapointing. Preliminary GDP has a reading of only 1% while revised UOM Consumer Sentiment is also under expectations with a reading of 55.7. Over 90% of macro data has been dissapointing during the last months.
At 10:00 AM Bernanke ratified that there will be no more QE3 for the moment but the FED will consider further measures in September's FOMC meeting. He once again affirms that the economy is growing at a pace slower than expected.
The initial market reaction it to drop hard with the S&P 500 falling over 16 points to then put reverse and push the american indices to positive territory.
The sell off was just a knee jerk reaction to the news from QE addicts as there were no reasons to expect more monetary stimulus as shown in yesterday's update.
Sadly, this volatility stops us for a profit in HANS for an 8.2% gain and in PII for a profit of 4.91%. However ALXN remains strong and gaining 2.5% at these moments.
We will see next week if new setups show up and with a firmer market, odds for trading long should improve.