READ ALL ABOUT IT!
Consumer Confidence soared to new levels hitting 56.0 for November from 39.8 in October!!!!
READ ALL ABOUT IT!
Everyone was relieved that Italy's bond aution showed that they still could raise money to keep the wheels greased (albiet it at a rate of nearly 8 percent).
Yes, even though experts were only looking for a jump to 42.5 the Consumer Confidence number for November was 56.0 Who are these "experts" anyhow? I mean really, Black Friday was a success, and they were that wrong? Hey, if my mechanic was that wrong I'd fire his ass!
And Itlay sold a bunch of bonds raising the capital they needed. Everyone sighed with relief.
The DOW responded by ZOOMING up a WHOPPING 32.6 points! OMG~ What a rally!! And volume on the DIA was an incredible 5,325,918!! Sounds good until you notice that 5,325,918 is only 53% of the average trading volume for the DIA. The SPY didn't fair any better. It hit 74% of trading volume but price didn't move as much.
Why the emphsis on volume? It tells you if people are trading in droves or if not one is trading. Think about it, at the end of the first week, people aren't standing in line to get iPhones anymore. Eventually, lower demand means cutting prices to get people in the door. Same in the market. It's no different. Volume dries up at the end of a run. And when no one wants to buy, the prices are cut as everyone begins to sell. Maybe in a year you'll hear someone muttering...... "Yea, this iPhone 4S does kinda suck".
This little rally of Monday and Tuesday is on crappy volume. I heard one pundit say it meant the "retail" investors weren't getting in. Retail hell, no one is getting in here boys and girls!! Look at the chart below and consider the drop in volume. No one wants to take a risk here. Everyone with a brain is thinking........this is prolly the top of this little 2 day run, and we only made it to the 4th floor. Damn. None the less the elevator operator is screaming "BASEMENT!"
Until some politicians get off their egos and actually acomplish something Europe is bust and the good ole USA ain't far behind folks. Bill Gross of PIMCO actually came out and said it on national TV. The elephant in the room has been identified again and I bet the general public missed it. (Bernake has been saying this for years).
Excuse me? Huh? Ohhhhhh, what did he say? He said that monetary policy is at a dead end in the US. So that leaves fiscal policy. And ya think Congress is going to actually do something about fiscal policy? REALLY? The Super Committee of 12 couldn't get it together. How can a group of 435? He also thinks Euroland is already in a recession (Duh) and that we could follow if something doesn't get done. (What are the odds of that?) He did note that the US Treasuries are the "the cleanest dirty shirts" out there. In other words we're in debt up to our ears and our balance sheet ain't pretty...... but we still have the lowest risk in the world.
Ok, so the charts are below. Note price, volume and the candlesticks. The DIA looks a bit better as it closed over it's 50 SMA. But the cards trump that as the SPY and the DIA are still lagging below the 50 SMA. Add the incredibly crappy volume and you have a ride to the basement. Caveat: Some stunning news like Europe has solved all it's problems changes everything. LOL
No change in the trends.
CURRENT MARKET TRENDS
Long Term (Weekly Chart) – DOWN
Medium Term (3 day chart) – DOWN
Short Term (Daily Chart) – DOWN
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