The sellers hit the street, and the bears thumped their chest! The consumer is rolling over! Oh my! Sell! Retail sales down. Oh my! Sell! It's just a bear market rally! Oh my! Sell!
So what were retail sales anyway? $337.7 billion? How about gasoline station sales? Wasn't that $26.5 billion? And hasn't gas has gone up 10% the last two weeks? Wouldn't that push sales to $29.2 billion? $340.4 would of pushed retail sales up the 0.4% they were down. And yet, despite the 0.4% haircut, inventories went down another 1%.
I suppose we'll never have to replenish inventory in this country again. Next we'll hear that we're not even going to eat. Look at the money we'll save on toilet paper! We'll live on coffee!
You want some stocks to sell? Hit the coffee stocks. That's where the squeeze is, and that's where some air can be taken out! But lay off the caffeine when you trade!
The bears are right to say that the "technicals" of the market are looking sloppy, but we came in a ton on a lot of these names in just the last few days. And you had every corporate treasurer in America dumping stock, just in case the consumer rolled over.
We had the same action on April 20th, except they hit the Dow and the the S&P harder than they did today, but the carnage on the rest of the market was the same.
And that marked a good trading opportunity.
The difference is that this time, some of the selling was real. I suppose if you suffered down to 666, and then you had the bounce back, you had to like some of these prices!
So that stock is changing hands to someone stronger.
That doesn't panic when dumb and dumber sell!