PPI Mirrors CPI
Numbers just hit and they are as deflationary as the CPI numbers were last week. Stock futures ticked up on the numbers while the metals tailed off. Housing starts strong as well in another release.
Sometimes I wonder just what all these numbers really mean. I watch them due to the fact that they can change the market on a short term basis as traders trade off of expectations, met or missed. For a long time though I've talked about how this hegemonic manipulation of inflation numbers makes them so much more meaningless now than when I was a kid. This sure looks and feels like the 70's again to me ... anyone else?
Yesterday we saw a clean break on the NASDAQ making an outside down day after hanging around the highs. With us so close to the end of the year it's hard to believe that the bonus boys are going to give it up here but they may let the trees blow in the wind a bit more before kicking those buy programs in. The key number is over on the SPX. That low yesterday broke the 20 day MA and a retest of 1250 looks more probable now.
So the backdrop is for a continued pull back here this week. Again, unless this market cracks hard, this still looks more like last year than anything else and it's starting to set up for a strong year end close and carryover into the first week or two in the markets.
I spent a lot of time digging through charts yesterday identifying both longs and shorts. I've a number of orders in again this morning, 3 of which have already hit pre-market. All I'm doing is scanning for setups where my risk reward is good and the probability of success given the pattern looks good. Last night, for example, a reader of Smart Charts inquired about CLF. For a bounce play, it's a decent chart. All time highs, hard retrace to the 50 day MA. That's a setup I can live with.
Sometimes I wonder just what all these numbers really mean. I watch them due to the fact that they can change the market on a short term basis as traders trade off of expectations, met or missed. For a long time though I've talked about how this hegemonic manipulation of inflation numbers makes them so much more meaningless now than when I was a kid. This sure looks and feels like the 70's again to me ... anyone else?
Yesterday we saw a clean break on the NASDAQ making an outside down day after hanging around the highs. With us so close to the end of the year it's hard to believe that the bonus boys are going to give it up here but they may let the trees blow in the wind a bit more before kicking those buy programs in. The key number is over on the SPX. That low yesterday broke the 20 day MA and a retest of 1250 looks more probable now.
So the backdrop is for a continued pull back here this week. Again, unless this market cracks hard, this still looks more like last year than anything else and it's starting to set up for a strong year end close and carryover into the first week or two in the markets.
I spent a lot of time digging through charts yesterday identifying both longs and shorts. I've a number of orders in again this morning, 3 of which have already hit pre-market. All I'm doing is scanning for setups where my risk reward is good and the probability of success given the pattern looks good. Last night, for example, a reader of Smart Charts inquired about CLF. For a bounce play, it's a decent chart. All time highs, hard retrace to the 50 day MA. That's a setup I can live with.
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