This is not a correction. I repeat this is not a correction. The wealthy in the market are experiencing uncertainty and fear about their taxes and they are selling this year’s profits to protect their gains. Add that to those who are sitting tight waiting to find out what the US Congress does with the so-called fiscal cliff and you have what we have – a slow bleeding.
- Retail sales fell in October for the first time in three months as super storm Sandy slammed the brakes on automobile purchases.
Aside from autos, retail sales slipped as well, but is this something to worry about? Probably not, as consumers most likely are concerned as well about the resolution of the fiscal cliff. Given the breathless media and its propensity for excessive drama, the uncertainty from the US election, Hurricane Sandy horribly disrupting the lives of 60 million people, and electricity and gasoline are still in short supply in many areas of the Northeast, I suspect this is reason enough to see retail sales drop in October.
- Why are the VIX and TVIX at yearly lows when the market is in a correction?
I think I just said it at the opening of this article, “This is not a correction. I repeat this is not a correction.” The reason the two indices are low is the overall fear is low. By the way, the VIX hit its yearly low on August 17th (13.30). Today it sits at 16.89, more or less. Aside from that, the market is selling a bit and waiting.
- Staples Inc, the largest U.S. office supply chain, reported a slightly better than expected quarterly profit, as costs declined and sales in North America held up.
It is almost too much to take. The hodgepodge of retail data conflating with the effects of Hurricane Sandy and the fiscal cliff stupidity are making me crazy. Did I just write that? Is it true? Is all the stuff floating around nonsensical? Am I going crazy? No, I am not going crazy, at least I don’t think I am.
- Hi, I’m writing in from India. Could you tell me how to use stochastics correctly?
Well, I could tell you how I use stochastics, which is as a confirmation tool for selecting trades. It tells me about the momentum of a stock regarding how much is being bought and how much is being sold. Other than that, I cannot speak to the myriad ways technical traders use the indicator(s). It can get quite complex, but my advice, as always, is keep it simple.
- Police and protesters clashed in Spain and Italy on Wednesday as millions of workers went on strike across Europe to protest against spending cuts they say have made the economic crisis worse.
Europe is returning to the news. So let’s add that basket of snakes to the current environment. Am I going crazy? No, the news below is helping to keep me sane. Yes it is.
China announced that it is effectively turning the corner on the economy and likely to meet its growth target for the year, more good news for Communist Party policy makers meeting in Beijing to anoint new leaders for the next decade.
Trade in the day; Invest in your life …
