Home > Uncategorized > ROHR: Brief Update 2009/11/20: Weak Data Good??

ROHR: Brief Update 2009/11/20: Weak Data Good??

▪  Is weakening economic data a bane or boon? Trends remain significantly contentious on equities’ failure from major resistance in the wake of softening economic data, and in spite of the continued central bank “liquidity forever” battle cry. In fact, the latter is sounding a bit hollow and tired. Unless US housing tendencies and consumer attitudes improve, central banks are now possibly pushing on the proverbial economic string. 

Especially in light of Wednesday’s dauntingly negative US Housing Starts and a depressing Mortgage Bankers Association third-quarter Delinquency and Foreclosure report yesterday, the risks to both consumer sentiment and financial services sector balance sheets have been highlighted once again, reinforcing other weakening economic news. That was all part of the answer to the question of whether DJIA could push through the 10,500 Tolerance of major 10,300-350 resistance, and December S&P 500 future finish the week above its 1,102-08 major downside Gap from last October’s failure. 

All of which had that much more import in light of other asset class potential decisions, such as whether the December T-note surmounts its 119-16/120-00 resistance (with similar levels apparent in Europe), and the US Dollar Index holds no worse than the .7500 area.  While some fear some sort of ‘Dollar Crisis’ related back to activity in Gold, its strength is out of all proportion to relative US dollar weakness against other currencies.

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