But Dollar Rules The Roost...
The economic news flooded the market this morning as Jobless Claims came in better than expected while Retail Sales and ISM Services came in far worse than expected. Let's analyze. Jobless Claims came in far better than expected. What does it mean? Well I would personally put an asterisk next to the number. Why? Well last week was Thanksgiving and Black Friday (the biggest shopping day of the year). Most companies would very possibly scale back layoffs on the week of Thanksgiving. In addition, any company in retail would most likely not be laying off employees right before Black Friday and the surge in consumers. Then if you look at Retail Sales and ISM Services. Both coming in far weaker than expected. These are most likely a more truthful guide to the actually economy. Mind you this economy is high on government spending as well. In fact, GDP would have been negative if not for the massive amount of printing the government/federal reserve has done. In any case, I give this economic news this morning at C- at best. The markets continue to hold around the flat line. Why? Why have they not sold off? Simply point, the dollar is holding it in check. As long as the dollar is controlled and not allowed to pop, this market, regardless of any or how bad the economic news is, will hold its gains. Understand the rules folks and enjoy making some money!
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