GBR Market Wrap: How to Position Your Trades

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In this Week’s Issue: October 14, 2011

Weekly Snapshot
• Industrial production for August was up by 1.2% in the Euro area
• Euro area annual inflation was 3.0% in September 20112, up from 2.5% in August
• U.S. retail sales in September were up 1.1% from August and up 7.9% from a year ago
• U.S. Senate approved a bill aimed at forcing China to raise its currency against the Dollar
• China’s trade surplus fell to US$14.5 billion in September from $17.8 billion in August
• China’s September CPI fell to an annualized +6.1% from +6.2% in August
• Australia’s jobless rate declines for tirst time since March
• U.S. Consumer Sentiment Index unexpectedly drops to 57.5 In October‎
• The number of unemployed in Britain rose to a 17-year high of 2.57m
• Federal regulators unveiled a 298-page draft the new “Volcker Rule”
• The August 2011 U.S. trade deficit was virtually unchanged at $45.6 billion
• The U.S. government ran a $1.3 trillion deficit for the budget year 2011

Market Barometers

Stock Market Barometer-2011-10-14FX and Commodity Market Barometer-2011-10-14


Weekly Chart
Christopher Sims (Princeton) and Thomas Sargent (NYU) won the Noble prize in Economics for developing tools to analyze the economic causes and effects of monetary policy – Congratulations!

Although everyone seems to agree that the state of the U.S. educational system is in need of a major overhaul, the U.S. continues to produce Nobel laureates like no other country. It appears that the number of Nobel laureates is a reflection of America’s ingenuity, creativity, and innovation is a source that its entrepreneurs continue to rely upon. Perhaps herein lies the path towards finding solutions to the economic challenges and a path towards greater prosperity.

Nobel Prize - graphic

Recommended Read
Here’s a an attempt towards finding positives within an economy that looks more and more like a recession.  Please consider Why The Economy Looks Like Expansion, Feels Like Recession by Daniel Gross.

Recommended Video
The markets have been in a tight trading range all summer. Are there any signs of a change in this side-ways trend? Time for Macke’s purple crayon again to get a sense of how to position your trades.

Good luck and good investing!


Clemens Kownatzki, MBA is an adjunct professor of financial risk management at the Graziadio School of Business and Management, as well as the founder and CEO of FX Investment Strategies, a Registered Investment Advisor. In addition to running his investment advisory firm, he is a contributing author at SeekingAlpha.com and BusinessInsider.com. He also authored the book, Money Music 101, available on Amazon and Kindle, in addition to publishing the popular investment blog www.fxinvestmentstrategies.com along with a weekly newsletter.Disclaimer

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Author of the article
Clemens Kownatzki, MBA
Clemens Kownatzki, MBA
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