The pace of change of real personal expenditures on durable goods slows down as expected:
The stock market does not acknowledge this yet, but I expect it to do so in the following months. Still, I think the recent weakness is a short term buy. The prospect of a good employment report may pull the averages higher. The put/call ratio also favors the scenario of a rally:
I think the highs at 1340 will be reached soon.
3 comments:
Adi, so you still think we will correct after market realize the personal expenditures? what correlation between this chart and SPX?
thanks
Tony
Tony,
When this series is turning from around the black horizontal line it signals a period of economic slowdown is ahead. This usually is accompanied by a stock market correction. I generally become defensive when this happens.
In turn, I like to become aggressively bullish when the series is at the bottom of its usual range.
THanks! GL on your trading!
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