(as of 7:30 PST)
It is an eerie feeling this
morning as the trading day begins. It
seems that investors are on edge, waiting for that selling signal; poised for what seems to be on the horizon; that market correction that everyone thinks
is coming. The data says otherwise and
markets opened grudgingly higher this morning, though with slight gains. Economic data has been sound. Retail sales were more than expected and even
troubled retailer JC Penney came in with a profit report above expectations. Housing sales were down, perhaps reflecting
the rise in mortgage interest rates that we have seen over the last few weeks. The consumer price index was
lower for the first time in six months, a development which might give The
Federal Reserve Bank more latitude in its quantitative easing program. Gold is down over one percent, continuing its
recent slide, and oil, as well, continues its downward trajectory. Today's rise feels like the last gasp of a
rally that is running on fumes.
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