Bad retail sales numbers (really bad), bad Empire State #, hot PPI, and futures plunge - - a lot more data to be released this week, with most important number on Friday; jobs.
Now the focus is on the macro economic situation. Inflation is far higher than that reported in the CPI/PPI. Never the less, the "Govermental cooked numbers" still shocked. Empire Index shows the slow demand in manufacturing of goods in that region. However, there are plenty of Private Companies who are chugging along strong in that region, with record profits. INTC, ABBOT Labs, put up good numbers, as did IBM last week. The Recession news is old news. The market is in a BEAR TREND, period. So, not every monkey and his mother will be making money. Your moves will have to be calculated. Shorting into yesterdays rally or shorting mid day yesterday when the market couldnt get leggs to run, was worth the risk. Over all, the economy, from my dealings in Manufacture's within the private sector, is chugging along. Some guys are saying that some orders for this quarter and next quarter are on hold. Their clients are the smaller companies that buy from them, who are not capitalized and are depended on "Loans" or Lines of credit from their Financial Institutions. These smaller guys are feeling the pinch. Hard Assets are Kind for a while. Some real good buying opps. right now, across the board. IMHO, market will resume its move lower to settle in the 7000 area. Joe Six pack and Small Retail Trader will walk away and the Volatility in the US Stock Markets will dry up after the elections. Money will be put to work in other areas.
Nearly every talking head has said the bottom was Friday morning, I feel sorry for those fools. We are going to break new lows once again.
OCTOBER 16th, INITAL CLAIMS report, is what he is referring TO. anything above 500k and look out below.