Thursday Outlook: No Inflation? Who Knew?!

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 |  Includes: DVY, IEF, IWM, IYR, MDY, QQQ, SPY, TLT, UDN, UUP, XHB, XLF, XLY
by: David Fry

Oh boy! Who knew? There’s no inflation. All you need do is read the headlines in the financial media and listen to the talking heads and you’ve got the story. The trick here of course is, and has been, to drink the Kool Aid of government manipulated inflation data.

This month the featured statistical “look left, run right” was the “seasonal” energy price adjustment which argues that energy demands will be higher at this time of year and that means we need to heavily discount the headline number. Did you ask your gas station attendant for a discount at the pump? If you didn’t get your adjustment just drop a note at the Bureau of Labor Statistics and ask for one. Good luck.

In my absence from posting, I’ve been visiting ETF providers in the Chicago area. What fun! Have I learned anything out in the western suburbs? Not much new frankly.

Stocks have been rising erratically over the past four trading days as bulls still command the tape and are able to cherry-pick the news that suits their purpose. Let’s face it, bulls have a lot of cash, trigger fingers and are beset with performance anxiety. It’s understandable.

Bears on the other hand have been repeatedly squeezed so much they dare not think of shorting.

Bulls are just playing the game with each other as volume and breadth haven’t been impressive.










































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