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Originally posted by spikefader
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I take it people didn't like GOOG earnings to much.Comment
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No, they missed, it halted, got slammed for 20% where it's now deciding if it's an over-reaction of justified. I really wouldn't be surprised to see it get bot from these levels and maybe retrace back to 400 by morning. If 350.00 does fail tonight, not good for the next couple weeks. Took my small YM 10pt stop and I'm back to stalkin tomorrow.Originally posted by AdamComment
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For Crying out loud
Spike,
Time to flip over to bear again, isn't it?
What we really need now is a tax increase to put the frosting on the cake.
Where's Ted Kennedy at, anyway?
Savings Rate at Lowest Level Since 1933
Monday January 30, 11:22 am ET
By Martin Crutsinger, AP Economics Writer
Savings Rate Hits Lowest Level Since 1933 As Consumers Use Money to Finance
Big-Ticket Purchases
WASHINGTON (AP) -- Americans' personal savings rate dipped into negative
territory in 2005, something that hasn't happened since the Great Depression.
Consumers depleted their savings to finance the purchases of cars and other
big-ticket items.
The Commerce Department reported Monday that the savings rate fell into negative
territory at minus 0.5 percent, meaning that Americans not only spent all of
their after-tax income last year but had to dip into previous savings or
increase borrowing.
The savings rate has been negative for an entire year only twice before -- in
1932 and 1933 -- two years when the country was struggling to cope with the
Great Depression, a time of massive business failures and job layoffs.
With employment growth strong now, analysts said that different factors are at
play. Americans feel they can spend more, given that the value of their homes,
the biggest asset for most families, has been rising sharply in recent years.
But analysts cautioned that this behavior was risky at a time when 78 million
Americans are on the verge of retirement.
"Americans seem to have the feeling that it is wimpish to save," said
David Wyss, chief economist at Standard & Poor's in New York. "The idea is
to put away money for old age and we are just not doing that."
The Commerce report said that consumer spending for December rose by 0.9
percent, more than double the 0.4 percent increase in incomes last month.
A price gauge that excludes food and energy rose by a tiny 0.1 percent in
December, down from a 0.2 percent rise in November. This inflation index linked
to consumer spending is closely watched by officials at the Federal Reserve.
The central bank meets on Tuesday, when it is expected it will boost interest
rates for a 14th time. However, many economists believe those rate hikes are
drawing to a close with perhaps another quarter-point hike at the March 28
meeting as the central bank is starting to see the impact of the previous rate
hikes in a slowing economy.
The government reported on Friday that overall economic growth slowed to a 1.1
percent rate in the final three months of the year, the most sluggish pace in
three years.
That slowdown was heavily influenced by a big drop for the quarter in spending
on new cars, which had surged in the summer as automakers offered attractive
sales incentives.
A negative savings rate means that Americans spent all their disposable income,
the amount left over after paying taxes, and dipped into their past savings to
finance their purchases. For the month, the savings rate fell to 0.7 percent,
the largest one-month decline since a 3.4 percent drop in August.
The 0.5 percent negative savings rate for 2005 followed a 1.8 percent rate of
savings in 2004. The last negative rates occurred in 1932, a drop of 0.9
percent, and a record 1.5 percent decline in 1933. In those years Americans
exhausted their savings to try to meet expenses in the wake of the worst
economic crisis in U.S. history.
One major reason that consumers felt confident in spending all of their
disposable incomes and dipping into savings last year was that a booming housing
market made them feel more wealthy. As their home prices surged at double-digit
rates, that created what economists call a "wealth effect" that
supported greater spending.
The concern, however, is that the housing boom of the past five years is
beginning to quiet down with the rise in mortgage rates. Analysts are closing
watching to see whether consumer spending, which accounts for two-thirds of
total economic activity, falters in 2006 as Americans, already carrying heavy
debt loads, don't feel as wealthy as the price appreciationComment
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Lufk
Spike what do you see in the chart LUFK TIA -The PhotonComment
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lol wow dude, what a monthly chart! (not shown)Originally posted by The Photon
LUFK is becoming monsterous. Looks like it's in the 5th up on the weekly now.
Bullish while over that latest channel long/c long area.
*previous discussion LUFK here http://www.mrmarketishuge.com/showpo...postcount=6098Comment
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thanks again Spike I'm back in for a double dip on this one -The PhotonComment
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CCJ Blow off top
I think CCJ just ran out of momentum....looks like a blow off top, don't you think?Comment
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