No Light Yet
Stocks tumbled 248 points today as the retail sales numbers hit home. The picture is very glum for the economy and stock projections are reflecting them. We might have a rebound sometime soon, but I anticipate we will break below 8000 soon also.
Bonds continued their increase in value (decrease in interest rates). The dollar went sideways today.
Gold fell, and is approaching being a “good buy”, rather than my current “buy” signal.
Oil fell and gasoline went up again. This is such a visible manipulation of the markets that I’m disgusted by it.
In the news today…..
Retail Sales fell 2.7% in December. Without autos the fall was 3.1% – a HUGE fall. This is the first time the annual Retail Sales figure was negative (minus 0.1%). This is six months in a row that retail sales have fallen. There is no light at the end of this tunnel yet to be seen.
The FED Beige Book report said that economic activity was down since December in ALL areas of the country. This is a second extremely negative forecast for the economy, and therefore stock prices.
The 30 Year mortgage rate is now 4.89% – WOW!!!!!!!!! It fell below 5%. The 15 year mortgage rate is 4.63%.
On the more humorous side, Cognac sales have fallen 6.2%, and this is the first fall in sales for 6 years. Too bad for the French.
Here are Today’s numbers:
Dow Jones 30 Industrial – 8200 (down 248 points)
10 Year Treasury Bond – 2.21% (down 0.08%)
Euro – $1.3168
Gold – $809 (down $12)
Oil – $37.43 (down $0.50)
Gasoline – $1.17 (up $0.02) – what’s wrong with this picture??? Manipulation at its most visible.
