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Up, Down or Sideways

May 9, 2011 – 5:08 pm

There will be little economic data other than some inflation numbers out this week. The April PPI and CPI numbers come out on Thursday and Friday. We will also get April retail sales. None of these numbers are expected to be too high or too low.

For stocks, drifting is likely. Earnings season is pretty much behind us though we will have numbers reported on a few more companies. There will be news coming from Europe from the countries that are still struggling with debt and from Asia as it fights inflation. But it’s likely commodity news may well dominate and of course prices for oil and gold especially will be on all the traders’ minds.

Still, drift is likely and my guess drifting lower is where we are going. It’s the season for weakness and without some kind of catalyst not much will happen. On the other hand corporations are flush with cash so look for mergers to be announced. Also, stock buybacks are reducing outstanding stock shares which is always a positive. The consumer is going to get a little break with lower prices at the pump so that is going to help retail sales in the weeks ahead if lower oil trends continue. Consumers are all important in our economy.

It’s the yin and yang of the market. Expect more yin than yang. Does anyone know which means an up or down market? I don’t.

Good Trading
Steve Peasley

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