Data Points

 

 

by Larry Levin

Thursday was another incredibly lame day on Fraud Street.  All of the early news was ignored and with a late surge nearly closed positive.  Despite the late rally, Thursday’s entire range was inside Wednesday’s range…lame indeed.  
 
Data points…

• According to the morning’s PPI, producer level inflation is rising: it was higher than expected. October PPI was +.4%, November was +.8%, and December was +1.1%. According to this data, US inflation at the producer level is running at +9.2% annualized. Good thing Benron Bernanke says this inflation stuff is a mirage; otherwise I would be nervous of higher prices…and corporate margins being squeezed like an orange.
• Weekly unemployment claims were the worst in 6-months. The data are seasonally adjusted of course, at 445,000 claims, but the unadjusted number is a staggering 770,413. How’s all that QE and fiscal stimulus doing for jobs again?
• Philly Fed data was originally released too high. It was revised from 24.3 to 20.8. That’s quite a large “error” isn’t it?
• Portugal and Spain were “bailed out” via direct bond purchases of the ECB and direct placements to China & Japan. Make no mistake; these countries (and Italy) are still in deep financial trouble.
• Ireland’s Prime Minister faces a no-confidence vote. Will that change its bailout structure?
• Food and energy riots are sprouting up in different parts of the world.

Trade Date: 1/13/11
E-Mini S&P Trades*
(before fees and commissions):

VA buy @ 2:23pm at 1278.25 = +0.25 & -0.25 (2 lot)  Algorithm positions (5)  “Reading the Tape” positions (7) …combined Secret’s, Algo, & “Reading the Tape” total… +4.25

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