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All I can to do in this limited amount of space is breifly describe what I see in the market or a stock at a given point in time
Outlooks or projections are purely speculative and can change materially at any time and without notice
Nothing presented here is intended to be given as investment advice
If you use any information presented here, you do so at your own risk

Saturday, December 5, 2009

Some food for thought.

The market got a lift on Friday from The Employment Situation Report, also known as the Labor Report, but the next one to watch will be the The Monthly Wholesale Trade Report which is due on the 9th.

In the Monthly Wholesale Trade Report is the inventories-to-sales (I/S) ratio, which is very closely watched. The Durable Goods Report is also watched almost as close and sheds some light on the durable sales figures. Any more good news like we saw Friday could easy send this market higher into Jan 2010. Stay on your toes, and watch the charts close knowing what to expect on the reaction to this next report and you will make some good coin! And don't get married to any one idea or EWT count, that is a recipe for disaster.

Below are links to explanations of other reports

Personal Income and Outlays

Industrial Production

Economic recovery occurs when these four indicators turn higher at about the same time. If the four indicators are not rising, then a normal recovery will not occur. If a complete recovery of these four indicators is far in the future, then the current gains in the stock market cannot be sustained just like in 2001. The market appears to be bracing for this one a little but, since it did not close near the highs Friday even after such a good Employment report.

Do some dd and get a handle on what these reports are really saying, and THEN you will know whether you should choose the bullish count or the bearish count.
Happy & prosperous trading to all!

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