Yesterday, the market staged a virtual repeat performance of the prior trading day (Monday). An early sell off was rebuffed, and the major indexes recovered their losses and managed to close around the flat line.
While home prices provided some good news, economic reality struck hard with the Consumer confidence index dropping more than expected. It fell to 46.6 in July, which was down from an unchanged reading of 49.3 in June. Economists had expected a drop to 48.0 in July.
It’s no secret that this decline was primarily caused by a worsening job market and, until that picture improves, confidence numbers will not rise markedly.
Right now, we seem to be stuck in a sideways trading range; however, the bulls have some reason to cheer as early sell offs do not show much staying power and rebounds materialize. Sooner or later, a breakout will occur, but we will have to wait and see if it’s to the upside or if this rally has hit a glass ceiling and prices are headed lower.
Comments 2
If we're going to privatize profits and socialize losses; and if we've given untold billions to Goldman Sachs and others, isn't it possible that the indexes are being managed to keep rising slightly? It's a win-win for the Goldman Sachses of the world, and a lose-lose for those who get sucked in.
I no longer think we're investing on a level trading field.
Goldman showed record profits and bonuses from the AIG via the fed gov 12 billion payoff for those corrupted financial instruments. So I wud ask, a firm, any firm that was almost out of biz last fall and gave Buffet such great terms on a loan as they had no cash and ditto the other banks – where did all this record profits come from. Sure Uncle Sam or in essence you, me and actually China loans. Its a rigged game and stacked deck. The only way to survive in this atmostphere above existence is to learn how to lean with this stuffing their pockets and go along with that trend. By rights Wall St itself shud have went belly up and all those dudes making 10s of millions in bonuses should have moved to their next gig hopefully where the money is. Too big too fail thats all I heard from Helicopter Ben this week on PBS. There was a time when too big too fail wud have been called a monopoly/oligopoly and busted it. Now both repubs and dems fall all over themselves to prop them up.