Surprise of the day is 2.2% fall in German manufacturing orders for July. The consensus was at 0.5%, June reading at 3.2%. Given the recent strength in German economy, this comes as a quite big negative surprise.

Chart 1. Germany Manufacturing Orders Monthly Change SA

Source: Bloomberg

Number of crude oil drilling rigs fell for 7; Number of natural gas drilling rigs rose for 4.

Chart 1. Baker Hughes U.S. Rig Count Change

Source: Baker Hughes

Chart 2. Baker Hughes Weekly U.S. Rig Count

Source: Baker Hughes

Chart 3. Baker Hughes Monthly World Rig Count

Source: Baker Hughes

U.S. railroads originated 302,358 carloads, up 8.2% compared with the same week in 2009, but down 8.1% compared with 5-year average. Week over week change was +1.2%.

Chart 1. Association of American Railroads U.S. Freight Carloads Total

Source: AAR

• Monday: Urstadt Biddle Properties (UBA)
• Tuesday: Phillips-Van Heusen (PVH), Casey’s General Stores (CASY), NCI Building Systems (NCS)
• Wednesday: The Men’s Wearhouse (MW), Shuffle Master (SHFL), Pep Boys – Manny, Moe & Jack (PBY), CIENA (CIEN), United Natural Foods (UNFI), Hi Tech Pharmacal (HITK), Smithfield Foods (SFD), AeroVironment (AVAV)
• Thursday: National Semiconductor Corporation (NSM), Piedmont Natural Gas (PNY), Korn/Ferry International (KFY), John Wiley & Sons (JW-A)
• Friday: Brady (BRC)

Important U.S. economic data:

• Monday: U.S. Holiday – Labor Day: All Markets Closed
• Tuesday: -
• Wednesday: MBA Purchase Applications, ICSC-Goldman Store Sales, Redbook, Quarterly Services Survey, Beige Book, Consumer Credit
• Thursday: Trade Balance (Prior: $-49.9, Consensus: $-46.8 B), Jobless Claims (Prior: 472.000, Consensus: 470.000), EIA Natural Gas Report, EIA Petroleum Status Report, Fed Balance Sheet, Money Supply
• Friday: Wholesale Trade

China steel prices ticking up, bringing some demand to the shipping markets.

Chart 1. Baltic Dry Indexes Relative Performance

Source: Bloomberg

Chart 2. Baltic Dry Index

Source: Bloomberg

Chart 3. Baltic Dry Index Components

Source: Bloomberg

Chart 4. China Iron Ore Price Fines CFR Main China Port

Source: Bloomberg

Chart 5. China Domestic Hot Rolled Steel Sheet Spot Average Price

Source: Bloomberg

Chart 6. Iron Ore Inventory At Chinese Ports

Source: Bloomberg

Chart 7. China Total Steel Inventory

Source: Bloomberg

I have been thinking for a while on starting my book review series and here comes the first one. I am going to try to point to books which I find most useful in improving my understanding of the markets and most interesting and fun to read.

My first review will be a short one and it will be on books that offer unique insight on life, thinking and trading of the most successful investors, speculators and money managers here all called traders.

Markets wizards is a series of three books written by Jack D. Schwager. It’s a series of interviews author conducts with the U.S. most successful traders covering trading in probably every available financial instruments and employing various trading styles and strategies.

The traders are picked by their (provable) track record which gives the books bullet-proof credibility. The traders interviewed are so diverse that the insight is offered to unique and different routes to success.

Full Disclaimer: I have bought these three books with my own money and I have not been encouraged in any way to do this review .

If you follow Amazon links from my site I will receive small commission from your purchases while you will pay the same price as going directly to Amazon. This is substitution to donations and a way to support Tainted Alpha Blog.

Supply is overwhelming demand; rates are approximately at ship operating costs; vessel owners are slowing down vessel speed to reduce supply.

Chart 1. Baltic Tanker Indexes Relative Performance

Source: Bloomberg

Chart 2. Baltic Tanker Indexes

Source: Bloomberg

ISM Non- Manufacturing Index was reported at 51.5 vs. 53.0 consensus and 54.3 reading in July.

Chart 1. ISM Non- Manufacturing Index

Source: ISM

ECRI Weekly Leading Index for week ending August 27 was reported down 10.1%. Prior reading was at -9.9%.

Again in the recession territory.

Chart 1. ECRI Weekly Leading Index

Source: Bloomberg