Continued Selling - More Bad Retail

best buy earningsWell, today's continued selling is a strong move for bears, especially after the rather strong day the market endured yesterday. Along with the market movement, there is also some more negative economic data that is looming in headlines today, also bringing down consumer confidence. Most all the shorts are performing quite well today, but it will be how they close out, which will determine the momentum.

PPI data came in this morning significantly worse than expected. In fact, Core PPI came in negative again, which was worse than I was anticipating and shows that, clearly, deflation is still something to be worried about. Even in the midst of trillions being spent by the government to stimulate production, there is still a negative trend on the PPI. In a few weeks, with some other data, we will better know if how near the down spiral is, at which markets could respond very negatively.

Best Buy announced their earnings today, which was very disappointing to investors. As such, most retailers are down today. In fact, for you premium podcast subscribers, BBY was a specific short I mentioned on last week's podcast, as well as shorting the XRT. Both positions have performed quite well. I think this is only the beginning for retailer's struggles, as shrinking consumer income will eventually pay a big toll on most stores.

Watching us close this session out today will be very influential on how I view the market momentum, currently. A strong sell off to close would be a very good indicator for bears and definitely cause for more concern for bullish investors. Happy Trading.

2 comments:

  1. Anonymous Says:

    Time for some SCC and TZA!

  2. lin liyi Says:

    Bicycles connected with clocks goes back towards 14th centuries. Some sort of businesses rolex replica uk may produce of which resolve by means of contrasting this type in addition to season ıt had been supplied. They will position simple improvements from the pattern or maybe rolex replica uk that the majority of persons are unable to. By sundials to help mineral water clocks to help assorted styles and designs until finally wristwatches gotten to brilliance in addition to watchmakers put together wristwatches. Some sort of appropriate rolex replica uk will probably make in addition to advertise a service that has a identical excellent in addition to pattern, although will not likely operate the manufacturers label. They're going to allow it to become obvious that is certainly a simulation. In contrast, a illegitimate imitation production will probably make in addition to advertise items that appear like custom made models in addition to seek to cross these individuals down seeing that real when using the designer's label. All kinds connected with wristwatches, whether some sort of activities check out or maybe a extravagance check out, include the rolex replica you can buy. These who wish to get hold of a true model need to be wary plenty of to obtain an original rolex replica; for this purpose, they should be hold many clues into their intellect.