Be extremely careful buying today's gap up on GDP data, here is why:
Instutitional investors are playing sell any gap opening lately. Yesterday was just one example of that occuring.
Why the GDP numbers are now far worse:
When the GDP estimates for last qtr first came out for 2.4% the markets crashed in the morning only to recover by day's end. Investors saw the slowdown as not as bad including myself.
Today:We have futures looking to gap up on data thats alot worse then the preliminary data that caused a huge gap down in stocks. So based on the reaction it would lead you to believe that it has been priced in?? Maybe some people priced it in but we will find out by 4pm if that really is the case or if this gap up open is just another bear trap to scalp the retail longs one more time in August before the real scalping starts in Sept. when the Hedge funds roll back into town from their Vacation Homes. 08:30 ECONX Q2 GDP- 2nd estimate +1.6% , Briefing.com consensus, prelim +2.4%
A +1.6% GDP is not nearly enough to keep the economy from losing jobs nevermind adding jobs.