The range bound theory within a well defined range is our last hope to recoup last weeks losses. The ‘Line in the Sand’:
The S&P 500 made a high for the year on April 26 of 1219, only to fall just two months later to a new low for 2010 of 1011 on July 1st. This week’s poor action pushed the index back into the bottom portion of that range. The game plan for this week is to play a bounce off that bottom half of the range and hopefully make some gains on the way back up to the top half of the range. Last week we had the S&P break below the 200-day and 50-day moving average, creating new lines of resistance, so if the range bound theory falls apart, then a new approach will be warranted. The situation will have to be monitored very closely.
One item of interest last week was the VIX. It seems we are letting the craziness of this market become the new norm. During the barrage of selling last Wednesday the VIX, the market's "fear gauge," barely moved at all in when compared to recent sell offs of equal force and magnitude.
Articles that I found interesting…..there was some really good stuff that I took from Gallup’s site.
Hummmmmm……I think we will start seeing more and more of this……the back lash against government employees………..Are federal workers overpaid? and Freeze Federal Employees Pay
Utah Republican Senator Orrin Hatch has introduced a bill that could slim the government's workforce. The Reduce and Cap Federal Workforce Act would bring down and freeze the number of civilian feds at February of 2009 levels. Agencies would need to make those reductions through attrition. The bill would exempt the Defense and Homeland Security departments and some intelligence agencies. Hatch says the government has become bloated, and his bill would cut it down to size.
Here is a really fascinating read………
The Future of Finance…..The Big Picture
Holy cow……is the WSJ serious! A Crash is coming – 10 reasons to be cautious…from the WSJ
Not-So-Happy Talk at Happy Hour….from Barron’s
Wall Street Whispers: Cheap Money Ain't Working
This shouldn’t be news to anyone………
Prices, Retail Sales Rise, But Consumer Remains Weak………..from The Street
Scanning the Gallop Poll Website there is some good information:
Economy Remains Top Concern as Midterm Elections Draw Nearer
American Approval of Labor Unions remains near record Low
Spending Slumps Even Back to School Shopping……..If our economy is driven by the consumer, then this is not good…….
Gov't. Employment Ranges From 38% in D.C. to 12% in Ohio
U.S. Underemployment Steady at 18.4% in July - Among those aged 18 to 29, 28.4% are underemployed.
Thanks for reading. - Rodney
