I use to tell a few people here before the Nasdaq got massacred that Greenspan was only human all to human and no infallible financial mechanic who was going to support their high tech portfolios.
Orders for expensive, long-lasting goods fell in the United States in July, according to the Commerce Department, which is a sign of continuing weakness in the U.S. manufacturing sector. This is not good for the U.S. economy or, by extension, the world economy. Globalization has linked manufacturers in the U.S. with companies in Europe and Asia. They are interdependent, as manufacturers of finished products in the U.S. often order parts from Europe and Asia. A slump in U.S. manufacturing has a ripple effect across the world.
Moreover, ICT data for the month of July were released Friday morning, according to my full service broker who I place equity short sale orders with. ICT orders (an important forward indicator for technology) were $27.9 bil, down 27% versus June. Trends continue to be downward, although less severely than the first half of the year. The three major components of the Superset (hardware, comm. equip. and semis) were likewise weak. This is not good for the technology sector and any rally is going to be a short term rally. |
