More disappointing economic data...What's next?

Investors were hit with a wider trade deficit, worse-than-expected unemployment benefit claims report, along with the reports of police gunfire at protesters in Saudi Arabia.  With all the disappointing economic news, things don't seem to be looking up.

Where do you see the market headed in the next 30 days?

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38 thoughts on “More disappointing economic data...What's next?

  1. The economy is non-linear. Non-linear equates to chaos theory. Chaos is one of Physics Foibles - non-predictable. Butterflies may cause tornadoes!!!

  2. The market collapsed in 2008 but Quantative easing will continue to prop the market up. It is a rigged game and a declining $.U.S. has resulted in an exit from dollars. The smart money is getting out of dollars and stocks and into precious metals and agricultural commodities.


  3. You know everyone responds to these things with their idea of what will 'save' their money in a collapse. The reality of it is that in a currency collapse, a civil war or at best unions seceding from the Union will result. And since the USA is SO big - it will take many other nations down with it. ALL forms of holdings will get clobbered!! Stocks, anything in dollars, gold, silver, diamonds - everything. And while one could stock up on some guns, ammo, food and get a deserted shack in a forest to hide out - that will last only so long until they find YOU and your 'stuff'.
    The USA is now spending about ONE trillion on JUST the interest on our debt. Currently the USA income tax revenues are about ONE trillion - which means there is now NO hope of our currency NOT collapsing and then our country collapsing. It is JUST a matter of 'when' (I give it 1 maybe 2 years max). And all this talk of 'what to do with your money' will prove futile. And my comments are not criticism - because I am guilty of it as much as anyone ... I'm just pointing out that - if you stay in the USA ... there are not a lot of good long range options (and I have NO intention of leaving).

  4. Federal Reserve Bank Chairman, Ben Bernanke, stated under sworn oath during testimony before the Congress of the United States that he and the Federal Reserve "would do whatever the feel is necessary to re-inflate the economy". His statement made to both the House and Senate should be taken to heart with the utmost seriousness it merits. He has managed to lift the financial markets to a level 66% higher than they were on March 9, 2009 as well as maintaining federal funds rate at 0% for over two years in an effort to inflate the entire economy, including the dismal housing market, the latter still remains in a near depressionary state despite 3% - 4% / 30-year fixed mortgage rates and $8000 new home buyer give-outs. With Ben's 'pledge' to do whatever it takes to inflate the economy, QE3 will be undertaken by the Federal Reserve and not by Congress because there is very little stomach for such dollar destroying methods amongst the general populace that politicians will be loath to even talk about a QE3.
    One must never forget that Ben Bernanke, I dare say, would even give one of the world's greatest illusionists, Harry Houdini, a good run for his money when it comes to creating illusions with smoke and mirrors. Houdini, unlike Bernanke or even Tim Geithner for that matter, was never a liar or a tax cheat.
    Ben's prolific printing presses I suspect will keep this market headed up through Q4/2011 or Q1/2012 at the very minimum. The correlation of movement in the current stock market in comparison with stock market events during the period that ran from 1929 to 1940 is frighteningly similar.

  5. Quantatative easing 3 may keep the market going but it is only a matter of time and it collapses. Get ready for Hyper inflation in America. The breakdown of order in the middle east countries is an example of what can happen here. They cannot afford to buy food!Get out of dollars and into gold or preferably silver.Invest in prescious metal mining stocks and agricultural commodities as a hedge against inflation. Do not buy anything you do not need. Learn to live on less! Seek comfort and amusement in practical things like family, spiritual and physical fitness.Make a list of things you can do without and stick to it.The future belongs to those who plan for it.

    God Bless America


  6. Buy silver and agricultural commodities, stock up on non perishable food. Get ready for Hyper inflation!


  7. I think the JPY will be heading up so the EURJPY and the stock market will be headed down. Not mentioning why I think so, but fill it in if you want to.

  8. This market is going alot higher before it goes alot lower. Hold on for this ride! 🙂

  9. Until we have a President, Senators, and House of Representatives that is willing to bite the bullet we will live in a chaotic nation. Unions were good at one point in time but now have lost sight of their real need and have gained the eye and ear of the political crowd and the taxpayers are paying. If the Tea Party becomes strong enough we can stop some of the madness of the financial world. No one seems to follow the money as we bailout the foreign banks through IMF and foreign aid. We keep handing out money to the poor but fail to give them incentives to get an education to have a decent job. Some ideas would be to have to attend some schooling each week before receiving a check and then only after you passed a drug test. We did not get in this problem over night and must start cutting the fat a few billion at a time but if we do not start now we will not have to wait long for the answers. No I am not bitter and have served my country in the military for over 28 years, have not received any increase in pay for retired service or social security for the past 2 years and do not look forward to any in the near future. As we were promised when I started the military career many things that have not come to pass but I know I will survive if we can keep the self serving from being elected.

    1. Joe,

      I think many folks who read this blog would concur with you on what the country needs to do.

      Thanks for your insights.


  10. gday,I believe it was W.D.Gann who said history repeats,what has happened will happen again,and that gent was one helluva trader.I think we've been here before,oil was in triple digit figures with gas looking to hit $4 a gallon soon,and most all commodities on a rocket to the moon.the dollar is heading south against most major currecies.In 2007-08,the scene was similar due in my opinion to the feds inflationary jacking up the printing presses and diluting the dollars value as they have done recently,which makes forex trading a little bit easier if you trade fx using fundamentals,as many do,But seeing the markets thru Ganns eyes and going to the charts of 2007-08 to see what's gonna happen would take a lot of guts to copy best to stand aside or when in doubt stay out.gday dave j

  11. Markets go up! Markets go down! Most times the cause is unpredictable... but always a good time to take profits! Live and learn!

  12. In spite of all history teaches us, people still cannot enjoy standing aside and observing instead of involving themselves in an emotional tizzie about the markets, politics, and wars. These cycles have been repeating themselves since the cave-man. And will continue in the future, long after we have gone. Forget about a lot of money, Carlos Slim must be enjoying life with his 8 bodyguards following him whereever he goes. Don't you just envy him worrying day and night about the safety of his family. You have to be sick and humorless to live like that. But=keep trying!

  13. Get on board the silver rocket!! Get off the titanic dollar, cause it just hit an iceberg 🙁

  14. Today was ridiculous: Massive earthquake in Japan, ME in turmoil, no POMO, and...guess what?! The markets ended up!

    Benny is going to keep this afloat at whatever cost for as long as he can. QE3 has to happen because he has no other choice.

    In the meantime, I'm going to buy a whole lot of silver.

    Best, -JPDG

  15. Yes, there's plenty of gloom and doom going around, but with the Japan and US tsumani/earthquake catastrophes and rioting in the Saudi Arabia, today's market continues its journey upwards. There's hardly a piece of bad news that hasn't been thrown at investors, who have become used to it. The reversal will come when enough investors are scared, or when there's no bad news at all. I think the markets will continue moving up, with occasional corrections. Our house of cards will fall one day, but not anytime soon.

  16. You ain't seen nothing yet. This market is getting through a bad patch of negative divergence (you know- prices going up but the indicators (like MACD) aren't keeping up. Once this gets cleared out- the market is back on track and this choo choo ain't stopping til it reaches levels never seen before.

  17. As a canadian, i think your president is a real disappointment and is fast turning your country into a bankrupt,bananna republic. look for gold to go to over $2000 an ounce, by the end of the year.

  18. Markets look gloomy now, but the next big headline could be positive then everything will turn around on a dime. Markets always do that - always will.

  19. Stocks will move in the opposite direction of where you think they are headed. Time to be like George Castanza and buy the OPPOSITE of whatever you were going to buy originally.....

    could work.....


  20. Very astute comment. But call the great evil empire for who she is. Globally taking control of rare earths, oil, coal, iron ore, etc. The day is coming when we will fight or submit. Send all our $ to her and she builds more weapons and a bigger military. Soon we be eating soylent green. Thank you China Thank you US government for being so shortsighted.

  21. Usually turmile like this will cause the value of gold and silve to go up. So why would you sell gold and silver?

  22. There is no other way but down. BHO will not let drilling permits be issued. Democrats still want pork spending and do not really want to cut anything. The Republicans want to cut a few $100 million and the country is in debt $1.4 TRILLION and counting. The Middle East is in turmoil and America’s creditability has gone the way of the Dodo bird.
    All I can say is the only hope we have is the 2012 elections that might find us president that loves our country and is willing to do the hard cuts to get a balanced budget, plus get some creditability back for US in the world.

  23. personally grandpadavidt
    sees gold going to new highs 1800-1900 an ounce august september 20111 time period
    happy trading

  24. gold is going to a new high! aug - sept 2011 1800-1900 an ounce.

    just my opinion , happy trading

  25. Hang on to you wallets everyone - things are going to go down the proverbial sewer hole. Pay more and have less access to your own money. $6 gas , $10 Corn. The dollar will be kicked out of world currency and trading will be done with another currency. God bless to all of you

  26. Middle East crises will be over just like everything else and market will go up. Due to uptrend for while, it is good excuse to take profit and let market retrace so buyers can come back to market.

  27. I see more dark clouds and very few white clouds ahead. Global turmoil,
    domestic political polarization, housing headed south, bond market crashing, gold and silver VOLATILE, EQ2 thriving and EQ3 waiting. The markets hate uncertainty and da boyz thrive on it. I am in cash waiting for some signs of stability

  28. The market would fall except that the government keeps devalueing the dollar. It is difficult to predict exactly when those devaluations will occur, because, they are caused by a political decision instead of market dynamics. At some point, they must stop doing this and normalize their policy but unless there is a real recovery of more than just the internationalist companies, the longer they wait, the larger the crash will be.

  29. Adjustments and transitions. I sense the Middle East-Eastern World-is wanting to join the rest of the world in the twenty-first century and the Western World is losing their identity. My view as a Western World-American-is that root cause main ingredient for so much strife is increased population numbers beginning to voice a need to be recognized as entities above a sub-standard existence. Therefore, the identity becomes known and wants to be recognized as contributors to the scheme of the twenty-first century. We who are unfortunate enough to understand this dilemma, cannot begin to remedy this transition because there is no feasible way to satiate the need. If the global trend of need continues-Egypt, Ivory Coast, Libya, Saudia Arabia, Wisconsin, Ohio, Greece, etc.-without adjusting to the trends we face in the twenty-first century, the potential global forecast of what lies in wait will exceed what happened during the first quarter of the twentieth century in a manner that could possibly once again change the control of who and what imposes the will of global dominance.
    We were considered a sleeping giant awaken at Pearl Harbor. Closely observe who has been in the shadows enveloping all this world chaos without comment. I feel they are the puppeteer pulling the strings on this creative chaos. It is their intent for world dominance-who are they-. So, what do we do for resolve and embrace this lurking foe to make them feel recognized world savior? We need a strategy that shifts the burden from us to them and allows us to step back into the shadows and take control of the strings. That is the real challenge for us. How do we sustain so many beings of life that continues to flourish vastly?

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