11:00 EST Update- 4% GDP

Wow, see why you do not try and guess what the data will be. So we have 2nd quarter GDP out at 4% and the markets have reacted. With a number like this you may be surprised at what some of the markets look like now. The one market I left out this morning was the US 10 Year Note and that just may end up being the most important market of the day. Take a look

The 10 Year was trading around 2.46% this morning and now we are just shy of 2.53%, you can see the drastic reaction in the chart above. With rates rising this morning on the surprise GDP, the US Dollar did indeed break through resistance, strengthening across the board with the Euro making a low below 13470, the British Pound below 169, Yen almost 103, with the Aussie below 93 in the futures price and the CAD at around 91.5. Here is the updated chart on the Dollar

So far the reaction in Gold has been rather mute considering the upwards move in the US Dollar, with Gold trading $5 on either side of $1300 since the release of the data.

Now on to the Dow Jones, take a look at this. Oh and by the way, all of these charts are hourly as I wanted to show the volatility in the markets. We had an upside move in the futures this morning and have since reversed. Why the up and then down in stocks? For now, the markets are worried that the FED will have to raise rates sooner rather than later! Notice how I said FOR NOW.... Here is a look at the stock markets morning two sided trade

Now we have the FED meeting at 2:15 this afternoon, let's see what they have to say and what the markets will look like at the end of the day! Plenty to keep me busy today.

TraderMartin