If world economies were heating up, this is not what you would expect to see.Yesterday trading brought us an 89% down volume day, just 2 days after a 90% down volume day, if this IS a NEW BULL MKT??? I don't ever recall this amount of volatility, (something like 14 90% days in last 60 or so...unprecedented)
FINAL US GDP comes in at a sinking 2.7% (if you can believe that). Further extension of unemployment bennies does not pass. ECRI sinking like a stone. Worst month of home sales on record. FINREG passes (BD!!)
Weakness in home prices remains, banks not carrying values at market value, we continue to have been supported by government stimulation and not much at that. Where to now?
As I see it, companies have little to NO pricing power, some raw materials pricing remain high, carrying costs of employees remain high, a SQUEEZE on profits may be on its way.
BUt even as the DATA comes in WEAKER AND WEAKER, we get WASHINGTON telling us the economy is gaining strength "MINUTE BY MINUTE".......that IMHO makes our precarious situation even scarier.
Well, maybe some of the smart people out there STILL calling this a "PRIMARY UPLEG" which translates into BULL MKT......have also redefined the economic realities that usually go along with that
*FNREG which passed Obama "we will create new independent agency to enforce..." at END OF DAY...IT'S ALL ABOUT GOV GETTING BIGGER......when what we really want is smaller gov, private enterprise is getting squeezed out. IF ONLY The existing agencies would do their damn jobs.....dont need ANOTHER entity!
D
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