By Dave Fry, founder and publisher of
and author of the best-selling book
February 23, 2010
CONSUMER CONFIDENCE TAKES A HIT
Round and round we go and where we stop does anyone know? Retailers reported mostly better than expected (shocking!) results but offered cautious (wimps!) outlooks. The hammer was put down on bulls when Consumer Confidence dropped precipitously (um, below expectations?) to only 46 from 56. So, just when we were wondering if Chucky the Consumer you can't kill had another sequel in him, things went wrong for the little beast.
The Case-Shiller home price gauge dropped 3% along the lines of estimates. Further the FDIC reported a continuing rise of troubled banks while Turbo-Tim mulls expanding a supplementary financing program.
has the latter issue nailed for the bailout it is.
Volume was heavier than previous rally days again and breadth was quite negative.
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Well that was an interesting way to spend Tuesday. The magnitude of the drop in Consumer Confidence shocked bulls who would ordinarily shrug off such data. The funny thing is Consumer Discretionary sectors did relatively well considering. Perhaps some bulls are just programmed to buy every dip no matter what.
The only thing that is disturbing currently is the prospect of a trading range environment where progress in either direction is limited.
Wednesday will feature New Home Sales and the tail-end of earnings.
Let's see what happens and you can follow our pithy comments on
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Dave Fry is founder and publisher of
, Dave's Daily blog and the best-selling book author of
, published by Wiley Finance in 2008. A detailed bio is here: