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Chicago PMI Weaker Than Expected, Advance Release Spooks Market, Inventories Surge Boost Index
For those wondering what caused the market to take a beating at 9:42 AM Eastern, it was the 3 minute advance release of the Chicago PMI to subscribers (a topic we have discussed previously). The index came out for the general mort consumption at 9:45 AM, when the bulk of the loss had already taken place. As for the actual data, add the PMI to the latest set of double dip inflection indicative data. After declining sequential increases of 5.8%, 4.8%, and 1.8%, the March PMI recorded a substantial downward move of -6.1%, from 62.6 to 58.8. And as you can see on the chart below, if it had not been for the Inventories subcomponent, which surged by 24% from 42.4 to 52.4, the index would have likely posted a double digit drop. As for the credibility of an inventory build up so late in the stimulus cycle, we will leave that to the integrity of the actual data.
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"when the bulk of the loss had already taken place"
so they then closed their shorts and wrong footed anyone who traded on the fundamentals of it
Yes. If I recall correctly, this same kind of bear trap happened with one of the previous Chicago PMI releases as well.
That's what ya get for trading on those silly, archaic "fundamentals."
Somebody took that news and decided to go "All-In" in IRE this morning....
Heh, they made their month in just 2 days.
LOL...
Who gives a damn about dead banks walking? The oil chart is much more interesting. Breakout.
Bank of Ireland?
It doesn't matter. I bet the jobs number is HUGE on Friday with the census goons being reported.
inventory in chicago area is now higher than at any point in 2008 and is only fractionally below highs of 2007
same exact deal for milwaukee data this morning - inventory component up to 60, higher than any point in 2008, and fractionally below the highs in 2007
but hey, we are in capital V recovery so we need every bit of that inventory, right?
For the rest of the useful idiots participating in this kind of market, I offer my condolences.
+10
'Nuff Said !!!!
Yeah that was a big dip...looks like it was yet another buying opportunity
Data schmata, it's the perception of ones well being that's the difference between an economic rebound and a recession/depression. Any link to "reality" has been severed. This is why "Sleepy" was talking about there being nothing wrong with the economy, other than people being depressed.
For all intents and purposes and in relation to the economy, perception is reality. This is why stock market crashes don't cause recession/depressions but the other way round. Lagging public perception of well being causes a down turn in public consumption which causes a drop in public markets. So fill that prescription for Zoloft and break out the credit card. Life is good and material goods purchased with debt is the height of human evolution.
<sarcasm off>
Which will be why the Dow is back up near 10,900 again...
DavidC
Nothing will bring this market down! Buy, buy, baby!
Final trading day of the quarter. The Team will be sure to slide into home plate with a " SAFE " call.
Nobody ever said bonus checks weren't part of the stimulus plan.
This is just ridiculous. How long can this charade go on? If the intent is to continue bizarro world until mid-term elections, how can anybody even care to vote. I would bring a pitchfork. Let me guess, S&P up 1 point at the close. Goebals would be proud.
Factory orders rise for 10th time in 11 months - AP
Factory orders rise modestly in February as manufacturing powers economic recovery - AP
Quick -somebody roll out the snowstorm excuse!
Melting snow = floods?
Yeah, big volume spike as SPX sells off 5 or 6 points in minutes. Then the dip monkeys are all over it with their tiny little volumes. They kind of remind me of those mini-dinosaurs in "Jurassic Park". Remember how they swarmed that much bigger human, chased him down in the stream and ate him?
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