Tag Archives: Consumer spending

Consumer Spending

«There is only one side to the market.

Not the bull side or the bear side, but the RIGHT side».

Jesse Livermore

Another record high for the DOW yesterday, and Nasdaq topped 4,000 for the first time in 13 years.

Nasdaq closed at 3,994,573. Earlier it touched an intraday high at 4,007,093. The Dow ended at 16,072,54. S&P 500 dipped 2,28% and closed at 1,802,48.

It was not a good day for social media stocks yesterday. Twitter was down 4,7% and are now trading at $39,06. Facebook is down 3,1% and are breaking down from a technical support at $45,80. Facebook is now trading at $44,82. Yelp slid 6,7% and are now trading at $58,20.

Many investors are scared and expect a pullback, but the stock market can still go higher. The Dow has increased seven weeks in a row now, and S&P 500 is up 26,4% for the year. Investors continue to turn their back on gold and they expect the gold price to decline to $1,180 and that is its three year low.

Investors follow U.S data reports closely to gauge if they will strengthen or weaken the case for the Fed to start tapering in December. Gold prices are sliding down on concerns the Fed would start tapering its 85 billion a month asset-purchase program in December. So do the Silver prices, but Copper is up 1,33% on the week.

The precious metal turned bearish after the Fed`s minutes meeting. Fed said they will start tapering if the economy continues to improve as expected. Consumer confidence will be an important number to follow today. A level below 70 starts to be critical.

It is a shopping week now. Black Friday is the friday following Thanksgiving Day in the United States and this is usually the beginning of the Christmas shopping season. Shops opens earlier than scheduled, and this has been the busiest shopping day of the year since 2005.

Consumer confidence fell to 72,0 in November and that is its lowest since December 2011. The economists expected 74,5 this month so this was a surprise for them all. Forecast for the consumer confidence later today is 72,2 (previous 71,2). I will follow this later today (10.00am EST).

News today: Building permits and housing starts at 8.30am, CB Consumer confidence at 10.00am.

i_love_shopping

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Consumer Confidence is declining

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.

 um-consumer-sentiment-through-november-2013

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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