Thursday, September 02, 2010

Market comments for Sept. 2nd

The stock market yesterday had a big rally and then just stopped, as we hadn't gone over the 50 day Moving average, as I said in yesterday's post. The Dow is up about 23 right now but there isn't sufficient volume coming into this market as you can see to make any significant difference. The real question is why? If people believe things have turned now and we are getting better from a recovery point of view, then why aren't many starting to buy stocks and driving it upward to 11,000 and beyond? I'll tell you why, the masses don't believe it! We are all waiting for a sizable correction, and only after that has happened will people be fooled into buying into the market. None want to be burned again. So this market could be best described as, the Little Engine that Couldn't!

Initial Jobless Claims came in at 472K compared to an expectation of 475K, not much difference there. And I noticed again that the prior period was adjusted from being down 475K to being down 478K. This is the second time that has happened. So we are to feel good about this week being down 3K less than expected but not notice that last week was adjusted down 3K which is worse. Nice try at manipulation folks but it doesn't work on the savvy investor, who is just watching by the sidelines.

Continuing Claims had the same nonsense going on. Reported today was that they were at 4.456 Million vs expectation of 4.460 Million a difference of only 0.004 fewer Continuing Claims. But let's look at the previous period. It was adjusted from a prior reading of 4.456 Million to an increase to 4.479 Million, an increase of 0.023 Million. See what I'm saying here. What has truly happened. You get it, I know you do.

See you here tomorrow as we see data of the Unemployment rate for August.

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