Futures are higher this morning with the /ES up about 11 points. I'm thinking this may be the start of a minor wave 4 and we should get another down leg that will be followed by a larger wave 4. Of course, I don't bet the farm on me being right on EW counts... they should properly be used in conjunction with other indicators. Like the fact that we touched the bottom of the channel yesterday and need to move up/sideways a little to "create more space" from oversold.
Did you see that the former AIG CEO is suing his former company! LOL – they sure must hire the ballsy ones! The current CEO has the nads to sue the federal government that has given his firm taxpayer life support. What a hole – I would’ve never given them a nickel and would enjoy seeing those who play with fire get burned.
Speaking of playing with fire, it is reported that JPMorgan EARNED $5 billion trading derivatives in their “Derivatives Trading Department.” LOL, you can’t make this stuff up! Why do we allow such nonsense? JPM is the center of the world’s derivatives and they have consolidated that world tremendously in the past year. This leaves the whole game under their control to be manipulated as they see fit. JPM needs to be taken off of life support and derivates need to be eliminated that do not add any value to society while the few that do need to be put on an open exchange which JPM has NO/ZERO control over. That’s just me :-)
Both retail sales data, the ICSC and the Redbook chain store sales showed declines last week:
ICSC Data (Econoday):Pending home sales comes out later this morning and Bernanke gives more lip service as well.
Store sales softened in the Feb. 28 week according to ICSC-GOldman's same-store tally that slipped 0.6 percent week-on-week for a -0.8 percent year-on-year pace. The report said traffic was light in the latest week though consumer activity is still firmer than earlier in the year.
Store sales were soft in the Feb. 28 week, the results of Redbook's weekly same-store tally that shows a -1.9 percent year-on-year rate, down 4 tenths from the prior week. Redbook said chains ended the month below plan. Chain stores will post their monthly results on Thursday. Vehicle sales will be released through the afternoon today.
Watch the dollar today, overnight it broke the latest steep uptrend line, but may just be taking a breather before breaking out to new highs. The pivot above us now is at 717, and below us is 696, then 644.
Have a great day, and don’t forget to share what you see with us on the daily market thread!
PS – I now have the MRI charts at the bottom of the site so when viewing comments they are always at the bottom of the page. I’m trying to get my comments to pop off the page like Mish’s site does, I was told that function is coming for everyone but I haven’t seen it yet, I’ll check again with JS-Kit.