STAGFLATION RULES....
FUNDAMENTAL ANALYSIS
The case for STAGFLATION, which I have been talking about for months, recieved all the facts it needed today. Philly Fed Survey turned in terrible along with leading indicators, suggesting that the economy continues to do badly and is expected to continue to be lousy. This, along with yesterday's high inflation numbers, suggests slow growth or zero growth along with rising inflation = STAGFLATION! Investors woke up to this fact after the Philly Fed Survey numbers are released and brought down the market which looked rather strong on the open. I am more and more inclined to believe that this is going to last for a while...
TECHNICAL ANALYSIS
The Dow looked like its going to break the 30MA to upside upon opening but ended way down suggesting that the 30MA resistance is still too strong to be broken. I think a visit to the Jan lows continue to be inevitable.
The case for STAGFLATION, which I have been talking about for months, recieved all the facts it needed today. Philly Fed Survey turned in terrible along with leading indicators, suggesting that the economy continues to do badly and is expected to continue to be lousy. This, along with yesterday's high inflation numbers, suggests slow growth or zero growth along with rising inflation = STAGFLATION! Investors woke up to this fact after the Philly Fed Survey numbers are released and brought down the market which looked rather strong on the open. I am more and more inclined to believe that this is going to last for a while...
TECHNICAL ANALYSIS
The Dow looked like its going to break the 30MA to upside upon opening but ended way down suggesting that the 30MA resistance is still too strong to be broken. I think a visit to the Jan lows continue to be inevitable.
Labels: fundamental analysis, stagflation, technical analysis
posted by Jason Ng at 4:20 PM
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