Bag Crazy Durable Goods Report | Economic Indicators

The prize was a crazy day in a positive report of durable goods. The Dow Jones Industrial Average ended the day up nearly 200 points. The Nasdaq ended the day up over 50 points at the end of the day. There are several things happening here that each investment strategy should take into account.

Firstly, this rally probably will not last. In the short term traders can take this trend up, the shortest next Monday. But many experts believe that this situation is temporary and should therefore investors and traders play this way.

The ratio of consumer durables was positive. Overall, negative numbers, but when you filter the transport sector, which is extremely volatile, the adjusted data were positive compared to last month. It's a good sign, but it can not be understood as the economy grows more than what the people said.

The major investment banks came out with a downgrade of economic growth between 1.2% and the rest of the year. And the great investors like Warren Buffett came out and said that even if the recession is officially declared over in June 2009, we are still functional decline.

You really need to take an economic indicator of a grain of salt. This is especially true today, when the economy is slow. This is really something that is always mentioned in books and learned the basics of the stock market. Many economists and analysts are moving average of several months of reports, first to identify a trend in either direction. While today's numbers were positive, while the average out of the recent reports, is flat.