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OpenBook traders were prepared for U.S. GDP report

Posted by admin On January - 27 - 2012

January 27th, 7:59 pm by Sam

(eToro Blog) Wall Street declined today on the lower than expected print of the fourth quarter GDP. The U.S. economy grew at 2.8% in Q4 2011, lower than the analyst expectations of growth of 3.0%. Consumer spending rose 2%, up from 1.7% in the previous quarter. However government spending fell with a 12.5% drop in defense. Exports grew by 4.7% and imports rose 4.4%. The rise in imports negated the effect of rising exports on the GDP. In a separate report the University of Michigan consumer report showed that consumer confidence rose to 75.0 in January, the fifth straight month of gains. The Dow is down 73 points, the Nasdaq is up 2 points and the S&P 500 is down 4 points at the time of writing this report. Traders on OpenBook are primarily long the SPX500 with average limits at 1,330 and stops at 1,300. OpenBook trader drangie was busy scalping on both sides of the SPX500 this morning. The trader looked for opportunities to buy the SPX500 as it approached 1,314 and sell as it approached 1,322. This strategy netted the trader a total of 30% in gains today.

OpenBook trader pyruss was closely watching the markets today and advising his followers and copiers. This trader who has 392 copiers on OpenBook started trading the EURUSD in the European session with several shorts on the EURUSD near 1.3100. However once the EURUSD broke above 1.3125, the trader placed several buy trades with profit targets near 1.3170. The trader believes the next EURUSD resistance lies at 1.3240. Pyruss continues to be a EURUSD bull and believes that the EURUSD will move lower on profit taking for now. Fundamentally, pyruss believes that the EURUSD will move higher as Greece is close to reaching an agreement with private bond holders.

OpenBook trader RoncinCorp was long the EURUSD today, however this trader closed most of his long positions before the U.S. GDP report. The trader started buying EURUSD in the European session as the pair crossed above 1.3100. This trader booked several profitable trades between 7.25% and 39%. This trader returned an impressive 629% this week; however this trader utilizes high risk in 41% of his trades.