7/29/13 Morning Blog

The market should be relatively quite up till Wednesday. The Federal Reserve open Market Committee begings a two day meeting on Tuesday and culminatetes with a press briefing of their opinions at 1pm et on Wed.

In news over the weekend Tokyo lead Asian stock lower, pulled down by possible delay or scaling back of a proposed increase in sales tax and the Yen strength ahead of the FOMC meeting.

The official pre holiday hiring is already put into place at Amazon as they plan to hire 5000 more warehouse workers and 2000 more customer service staff.

Toyota is also bringing on additional workers at it's factory in Indiana to support demand

President Obama is still playing down the Keystone Pipeline saying it will not create as many jobs as advertised and pollution concerns. This spells good news for the railroads that haul oil like KSU.

Profit growth slowed  at Chinese Industrial firms. Net income at Chinese Industrial firms rose 6.3% compared to May's number at 15.5% it shows a rapidly cooling economy.

On a more positive note as traders we have to understand the forces at work that we probably do not see. I am talking about seasonality of sectors. As you will notice in our feature chart today I have included a chart of the gold index (GLD). Gold is approaching a line that was support and now has turned to resistance, if gold can break through this level it could turn in a nice profit. Gold has entered it's seasonality strong area now through December because this is India's weeding season and other jewelers around the world are buying gold in anticipation of the Christmas holidays.

Lastly a trader tip by Dr. Alexander Elder: When you trade in the markets you trade against the sharpest minds in the world. The field on which we compete has been slanted to ensure our failure. If we let our emotions interfere with our trading, the battle is over.

Be very mindful that every time we trade everyone else wants to take our money, we have to be reasonable in our expectations and not get greedy, those that bend the rules are destined for destruction in the market. Have a great day.