Pre Market - August 24th 2007

"Don't fight the trend"

This is important to remember. The market is always right, even if we don't like it. When you look at an index chart and it is running into resistance don't take long side trades in the 'hope' that the market will rally. That is a 'bet', not a 'trade'.

Use the market strength to your advantage. So far volume has been bigger on downward moves than it has been on upward moves.

Durable goods numbers came in a few moments ago and they were stronger then expected. This is a double sided sword. On one side it provides a piece of information about the economy and gives the economy is falling folks a pause in their steps and usually this would be good for the markets. But on the other side it could give the Feds a reason to offset the Fed Funds rate cut. Actually the Durable goods numbers are not all that reliable as they keep revising them the next month. And the trend has been lately to revise downward. So I don't put much into the durable goods data.

The data that will have more of an impact this morning will be the new home sales at 10am. Looking at a mixed day with a higher probability of downward movement as we end the trading week and many will not want to leave money in the markets through the weekend.