Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Mevis who wrote (68196)	1/31/2015 9:26:08 PM
From: GROUND ZERO™	2 Recommendations Recommended By Justinfo Oblivious Respond to of 218663

Yes, I agree with you on all points... I think, if this market really does turn lower from here and that pattern is broken, that this market may not stop declining so readily... this could morph into a more extended decline for a much longer period of time... something is amiss and the market doesn't speak English, so we can only read it as best as we can... Greece is in serious trouble, Europe isn't much better, certainly all markets are somehow connected... I don't see how our market can remain robust if the European and/or Asian markets begin to slide... besides, all the economic numbers are not as good as they should... so, we'll see... GZ

To: Mevis who wrote (68196)	1/31/2015 10:01:30 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 218663

Here are some more reasons why this market is now vulnerable... Friday’s report that the economy grew only 2.6% in last year’s fourth quarter was disappointing, not least because it would have been worse without the fillip for consumers from falling oil prices. Economists were hoping for the growth momentum from the previous two quarters to kick the economy onto a higher plane above 3%, but instead growth slipped back closer to this subpar recovery’s norm. The composition of fourth-quarter growth is also cause for some concern. The more troubling story is nonresidential investment, which contributed a paltry 0.24 points to GDP. Business investment grew at a feeble 1.9%, with notable declines in industrial and transportation equipment. This is almost certainly the fallout from the flip side of lower oil prices, which is the blow to U.S. energy production. This is likely to continue for some time as the shale industry adjusts, and don’t be surprised if you start reading about the failures of energy companies that took on too much debt during the boom. The shame in the fourth quarter is that other business spending wasn’t enough to compensate for the declines in energy. This also fits the pattern of this not-so-great expansion, and it will take time for lower energy prices to assist other parts of the economy. The fourth quarter report means that growth for all of 2014 clocked in at 2.4%, which is the best since 2.5% in 2010. It also means another year, an astonishing ninth in a row, in which the economy did not grow by 3%. wsj.com GZ