Wednesday, June 15, 2011

Timberrrrrr!

Whoa, the computers seemed to get their sell buttons stuck today because the market couldn't seem to come up for air today. The excuse today in most media outlets seems to be the weak NYS manufacturing number (I sound like a broken record on this subject but NY State manufacturing is such a small slice of our economy that drawing any conclusions from it - positive or negative - is a fool's game).

"The future general business conditions index fell thirty points, reaching 22.5, its lowest level since early 2009." This is obviously moving in the wrong direction but I think people are overthinking this minor piece of data.

The charts for the markets are pretty ugly here and one more big move down and the next stop is going to be another 8% lower. If you sleep in a tinfoil hat it's pretty easy to believe the theory that the banks are letting the market fall in the hopes of coaxing QE 3 out of the Fed.

Greece and the entire European debt issue are clearly the bigger issue in my opinion (interest on greek 2 yr notes spiked over 27% today). Watch for more fireworks later this week.

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