Heinz and all--I agree, Heinz. It doesn't matter. As I stated yesterday, there was little hope that the bears would get much help from today's inflation report. The retail side of energy inflation pushed through fast; thus, the April spike. The longer-term cost-push side of energy inflation will take longer to germinate, but will have longer lasting and more devastating consequence. Wage pressures will build as well, so inflation is a problem for the future, not the present. Of course, future problems are present problems for the stock market. Right now, in addition, the weakness of the dollar and the need to fight future inflation from that source alone is now calling the tune.
Also, as some posters have already mentioned, it is interesting to see the DOW up today and the NAZ down, "pushing that penny around." I may not see a crash, but I just don't see a surge in stock prices ahead. There are too many clouds hanging over this market.
At the same time, the base that the Trannies are forming is quite interesting. For a number of days, the market has had the transports down 30+ points, only to recover by the end of the day. What does this say to the DOW theorists?
Cheers! |
