Tuesday, September 14, 2010

Market comments for Sept. 14th

The big news of the day and possibly the week is the Retail Sales numbers for Aug. For the prior month of July the data was +0.4%. Aug. data was expected to come in at +0.2% and they surprised by coming in at +0.4%. Ex Auto's the number came in at a strong +0.6% but again, the July data was revised down to +0.3%. What shenanigans!. Dow Futures which were down earlier responded positively on the news and the Futures are now up +6.

The next piece of data to be released after the market opens will be Business Inventories for July. Expectations are for them to rise to +0.8%. June's data came in at +0.3%.

This may be good for the Democrats going into the mid term election, but bad for Republicans. That discussion is now being conducted on CNBC, by Andrew Sorkin of the NY Times. His view is, if that is true, then it could be bad for the stock market. It is an interesting point of view. After the market has had a chance to digest the news, the Dow Futures are now down -11 points, as I sit here typing at 6:00am PST.

There was a poll released by CNBC titled, Investors wary of stock trading. The article is worth reading and can be found here. In summary it said that 61 percent said the market's recent volatility has made them less confident about buying and selling individual stocks. And the majority of those surveyed — 55 percent — said the market is fair only to some investors. You can't blame investors. It is a result of all the manipulation by the Fed., Treasury and other Gov't agencies, which are trying to slap lipstick on this pig called Consumer Confidence. Their ultimate goal is to have a positive effect on our psychology so we start buying more stuff. But it isn't working, is it? It is having the opposite effect.

I am curious what effect it is having on your psychology. Leave a comment by clicking on "Comments" below. There is a delay in posting as I review all comments before they are posted to insure there is no foul language contained.

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