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Wednesday, November 18, 2009

Wednesday Morning Update

Well, this is interesting. The dollar, which strengthened briefly yesterday before reversing, continued to weaken overnight and should have sent the market screaming higher, but it didn't .

Here are this morning's economic reports, and they aren't pretty. Both housing starts and building permits have declined, when economics expected both to increase. It seems the housing subsidy effect isn't as lasting as Obama had hoped. CPI and core CPI came in a little hot, meaning inflation expectations are rising (geez, I guess $1100 gold didn't tip them off). The free money gravy train may have to end a lot sooner then Bernanke wants it to. The leading sector, by a mile, is XLF. Lagging badly are XLI, XLK, and XLY. Today is the Nasdaq's turn to lag, although the Russell 2000 isn't far behind. Both gold and oil are holding up, so we may be in for an usual day today.

There are 169 new highs so far, with some notable stocks breaking out, including LFT, CRC, CHS, and DE. There was nothing on either of the watch lists reporting either last night or this morning, but after the close today I'm expecting a report from CYBX.

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