By Sell Puts
Today the market shrugged the number initially, before drifting back into the emotionless channel of low volume up, high volume down. I think we spoke about this yesterday if i am not mistaken. The following quote sums up our current market environment:
"Volume has been light even by summer standards, which has added to the day-to-day volatility, said Uri Landesman, president of Platinum Partners. The low volume comes from investors' uncertainty about where the market is headed, he said."
Back to the economy, durable goods are down and factory orders are basically flat to down. If you think about factory orders and durable goods in a macro sense taking into account past inventory draw downs because factory's were not producing at all due to the "the crash". One can surmise most new factory orders are merely filling up anemic storeroom shelves. Not to mention the huge backlog of inventory in real estate, the silent killer the media fails to touch upon. Real estate scares the average Joe easier than large market gyrations, its only a matter of time till the phantom buying stops.
The slowdown in the Chicago area economy is of no surprise as well. I am not an expert, though i did take walk up Michigan ave looking for a nice pair of loafers, no luck. Half the damn stores carried very small to non existent inventories.
