State governments face a trillion-dollar gap between the pension, health-care and other retirement benefits promised to leftist public employees so that socialist politicians can continue to purchase the state worker votes and use of their propaganda machines each election. The left continues to load up government with patronage jobs for their friends and relatives. They love to say, "It is not what you know that gets you a job… it is who you know."
World Outlook
Bondholders get cautious as Colombian interest on debt climb toward 9%. Colombia’s peso slump will drive Columbia closer to default.
A poll by Torcuato Di Tella University indicates Argentines expect consumer prices to rise over 31 percent over the next 12 months.
Week of Market Reports:
Faster-than-estimated growth in New York manufacturing spurred optimism the global economic recovery will be sustained. Commodities rallied, with oil jumping the most in four months.
Housing Market Index
The Housing Market Index moved up in February, but chronic mortgage foreclosures suggest tepid gains in home construction in the quarters ahead.
New Housing starts were up but building permits were down. Import prices were up 0.4% or at a 4.8% annual rate.
Industrial Production was up 0.9% and utilization rose to 72.6%.
Thursday, Feb. 18:
Unemployment claims 8:30 AM
Producer Price Index 8:30 AM
Leading Economic Index 10 AM
Friday, Feb. 19:
Consumer Price Index 8:30 AM
Market forces Feb 17, 2010
The stock markets consolidate gains.
Warning; when the market rises close to the next high (in 2 to 4 months) it will likely be critical time to take profits because FED tightening will likely be occurring soon after. After the next high point the subsequent decline will likely break the old October 30 lows and challenge even the July 2009 low. Our corrected NYSE cash flow index gave its Head & Shoulder neck breakdown sell signal on Jan 29 when the NYSE (corrected for trading volume) broke through the neckline of a head and shoulders formation and it plunged about 3% below. But that signal has a long lead time which allows us to know what is likely two or three months in advance. The reason we cannot do a Market Cash Flow Analysis (MCFA) of the other exchanges is because they use the NYSE volume; they no longer use their own real stock volume.
Asian markets were down over night; Shanghai closed, Hong Kong down -0.5%, India down -0.6%, and Japan up 0.3%.
European markets are up slightly in the range from 0.3% to +0.5% this morning about half way through their day.
Today US pre-market futures are down about -0.1% at 7:00 AM EST. It is seldom a good indicator of what will happen.
Yesterday many stocks tried to cover their gaps before advancing but many gaps still remain. We expect that will be an excuse some talking heads use to cover their mistakes three months from now when we estimate the market will decline.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment