Domestic equities opened significantly lower on Tuesday as investors came back from the extended Labor Day weekend. Stocks, however, managed to work their way higher during the trading session, extending gains into Wednesday in anticipation of President Obama’s address to Congress on Thursday regarding his plan to stimulate employment over the next year. Overseas in Berlin, the courts ruled to reject lawsuits aimed at stopping Germany’s participation in “bailing out” member nations of the debt-stricken Eurozone. Gold surged to a new high of $1,923 an ounce prior to Wall Streets open on Tuesday, although the precious metal quickly fell victim to rampant profit-taking, sinking down to $1,800 an ounce the following day.
Checking In: Trading Ideas
This week, our trading ideas included a short position in a domestic sector fund, as well as long positions in a defensive consumer-staple ETF along with “safer” exposure to the Eurozone. Stocks will likely remain volatile until solid fundamental economic data restores investor confidence. Below, we highlight how our trade recommendations from Monday’s Insider have been holding up:
Trading Idea #1: Short IYT
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