Not safe to trade today

We decide not to trade today as market still looks unstable
Look at how choppy the market is as it broke below 1630 but suddenly shoot up, twice

Stock Market Analysis

Today is the end of the week as well as end of the month
Trade less or not trade at all as the market is still mixed & might get volatile
If it repeats the pattern of last two days, closing at 1635 & 1638, it will close around 1641 today
But it doesn't seem like the case for now as stocks dropped after weak economic news
S&P 500 might rebound around 1630 or break below

US economic reports update

Core PCE Price Index m/m
Actual: 0.1%   Estimate: 0.2%   Previous: 0.2%
Personal Spending m/m
Actual: 0.1%   Estimate: 0.3%   Previous: 0.6%
Personal Income m/m
Actual: 0.1%   Estimate: 0.3%   Previous: 0.3%

Chicago PMI
Actual: 53.0   Estimate: 53.2   Previous: 52.3
Revised UoM Consumer Sentiment
Actual: 82.1   Estimate: 81.2   Previous: 80.0
Revised UoM Inflation Expectations
Actual: 3.0%    Previous:3.1%

US economic reports 30 August 2013

8:30am
Core PCE Price Index m/m
Personal Spending m/m
Personal Income m/m
9:00am
FOMC Member Bullard Speaks
9:45am
Chicago PMI
9:55am
Revised UoM Consumer Sentiment
Revised UoM Inflation Expectations

Hedge & sell S&P 500 (Double)- won

Medium risk trade:
Sell S&P 500 around 1640 for end of day expiration
S&P 500 broke below 1640, hedge our buy by selling
(Double your amount as this signal is stronger)

Result: won
S&P 500 closed @ 1638.17
Once S&P 500 broke below 1640, we hedged our previous loss for double profits

Buy S&P 500- lost

Medium risk trade:
Buy S&P 500 around 1640 for end of day expiration

Result: lost
S&P 500 closed @ 1638.17
Traders decided to sell at the end of the day as we suspected, we hedged this loss with a double win later

Sell S&P 500 around 1640

Medium risk trade:
Sell S&P 500 around 1640 for end of day expiration
S&P 500 broke below 1640, hedge our buy by selling
(Double your amount as this signal is stronger)

Buy S&P 500 @ 1640

Medium risk trade:
Buy S&P 500 around 1640 for end of day expiration
S&P 500 broke above 1640 & should become new support,  resistance @ 1646 but stocks might go higher today
Risk: Fear overcomes traders & they decide to take profit, S&P 500 might drop from 1646 & even break below support @ 1640

Stock market analysis

Obama said that he has not made a decision on Syria strike but has gotten options from US military & concluded that the Syrian government used chemical weapons

Analyzing Obama's words, he intends to use some kind of military action that would send a strong message to Syria but has not confirmed a decision yet
The move will be made without UN support because Russia has veto power & supports Syria

Looking towards an uncertain future, the market should go down, but the market might go higher instead just because a decision has not been made yet

S&P 500 might rebound around 1630 again

US economic reports update

Prelim GDP q/q
Actual: 2.5%   Estimate: 2.2%   Previous: 1.7%
Unemployment Claims
Actual: 331K   Estimate: 330K   Previous: 337K
Prelim GDP Price Index q/q
Actual: 0.8%   Estimate: 0.7%   Previous: 0.7%