Recent Data

by Larry Levin

Last week's 30-YR Bond auction didn't go so well. It had a poor bid/cover ratio and the Treasury was forced to issue the bonds at a higher interest rate than planned.

* Import prices were seven times higher than last month's import prices largely due to the falling US dollar.

* Consumer sentiment was awful - coming in much worse than last month and much worse than expected. The weakness is rooted in the still contracting jobs market, which won't be improving any time soon.

* Mortgage applications plummeted in the last week.

* Weekly jobless claims are still north of 500,000.

* Retail sales improved. Hmm, the odd thing about this is that States are not reporting better retail TAX collections. Are the retail sales data tainted/rigged now too?

* Empire State (NY) manufacturing data was absolutely horrid - much worse than expected.

* PPI core data showing deflationary signs, which scares the Fed.

* Industrial production was horrid - much worse than expected.

* Housing market index was worse than expected.

* CPI was as expected.

* Housing starts were much worse than expected.

So this is the data. It is all true and yet the market continues to rally because...wait for it...the US is dropping. When did it become fashionable and BULLISH to trash one's own currency? When did a lower standard of living become B-U-L-L-I-S-H?

Aint it grand?



Previous Day's Trading Room Results:

Trade Date: 11/18/09

E-Mini S&P Trades*
(before fees and commissions):



1) OTF buy @ 11:54am at 1103.50 = -1.25 (1 lot)

2) Algorithm positions (2)

3) "Reading the Tape" positions (17) ...combined Secret's, Algo, & "Reading the Tape" total...+0.25



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