Home > Apprentice Trader Journals > Welcome to the 3Q

Welcome to the 3Q

Portfolio managers couldn’t window dress up the results for the last
quarter, they are hoping that with such a weak close the 3Q will be
easier to beat expectations. Either way their are plenty of unhappy
investors out there, even hedge funds performed very poorly in the
quarter.

Spain’s possible downgrade was well taken by today E3.5bn 5yr note
auction, which is helping out the euro this morning. Financial reform
passes congress, but still needs the votes in the Senate, which won’t
get to it till after next week’s recess.

Plenty of employment numbers in the next two days, which will set the
tone for the start of the 3Q. Followed by the long weekend. Volume had
been very low for the most part of the day until the sellers took over
at the end of the day, raising the volume on the SPY to 300mm – a high
number for a market trading on the lows of the year.

Once again wait till volume picks up before committing capital in a
trade otherwise you run the risk of getting chopped up, like most of
yesterday morning.

Will continue to trade commodity stocks as the
currencies are still dictating a direction in these markets. The Tech
sector closed weak yesterday, as some of the leaders dropped to new
lows for the year – DELL CSCO EBAY MSFT INTC… all worth looking at
today.

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