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STOCKS INCHING ALONG ON LIGHT VOLUME 2 comments
Economic data wasn't that inspiring either way Friday as Consumer Sentiment increased (75.3 vs 72.5 previous & expected 73) which may be pre-gas spike data. And, new home sales were static (321K vs 324K previous and 315K expected).
Earnings from JC Penney (JCP) were much in view but a trained financial archeologist would have a hard time figuring it out given all the write downs and adjustments. The net result is a loss and hopes that their new pricing strategy will work. It's the chance the company is taking.
The retail sector (XRT) overall is still caught between better confidence data but mixed results. Newmont Mining (NEM) reported a loss based on a write down of a single large mining project. However, the company's reserves increased by 5.6% and they're carrying the reserves at only $1,200 per ounce for gold. Nevertheless, as opposed to JCP, NEM got sold hard as gold prices were also weaker Friday which also negatively affected gold miners (GDX) overall.
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This post has 2 comments:
Great work again, and especially well narrated.
Good point about APPL dominating certain sectors and masking (possible to probable) weakness underneath.
Also relevant to the excellent points about dollar weakness and volume:
The FED and Admin want current dollar weakness to alleviate trade imbalance, and to keep what otherwise would be a weaker Euro from changing that.
Volume is getting down to that provided by the proprietary trading desks, HFT, and institutional houses as the retail investor has , in general, grown too cautious to overplay a weak hand right now.
Higher energy costs adding fuel to fire.
If April earnings reports don't look strong enough as learned early (always) by the insiders, they will have the bail out quick hammer cocked for speedy exit.
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