It is thanksgiving week and this week is usually a low volume week. Traders are off enjoying the extended holiday, and if something moves, it will move monday and Tuesday. Since we are at the all time high, maybe some people are thinking profit taking?
Consumer confidence is declining. This gives us an idea about the consumer spending in the U.S economy. If people don`t feel great about their own economy, they will not spend so much money. It is just that simple.
I wrote about Apple and their new products and they really need to do it well in Q4. If people don`t have money to spend, they will not buy any Apple products like phones, tablets or other innovative products. They will rather keep what they have and cut back on their discretionary spending.
If people don`t spend money this holiday season, companies will not earn so much money and the stock prices will not go up. Nor the GDP (gross domestic product) will go up.
What really drives the U.S economy are suggesting there isn`t much light at the end of the tunnel. What about the so-called economic recovery we have seen since the financial crises? Does it work?
Gold is trading at $1231,50. Down -1,01%. As long as the inflation is low, the gold will continue to decline. People expect hyper inflation, but Janet Yellen are fighting against deflation. News today: Pending Home Sales at 10:00am.
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