The most important market activity to note came from the commodity market this week. Gasoline prices shot up by a significant 14 cents per gallon in the five-day work week – and with a wintery-bluster wreaking havoc in a frigid northeast, home heating oil is poised to rise.
Higher energy prices affect almost every required good, such as food, and nothing pinches consumer budgets more than mass market price inflation in these two segments.
Food and travel are required for life. Price pressures in these areas will add further burden to an already fragile market economy. And even though some “experts” are trying to make Market condition seem stronger than it really is, the facts remain largely to the contrary.
The U.S. government announced that the trade deficit narrowed by a “surprising” $10 billion in the fourth quarter of 2012; the drop was by a number much greater than what most analysts surveyed had expected. (It really is amazing how often “experts” are so surprised by some many things. Keep this in mind.)
Some of these analysts went on to speculate that a smaller trade deficit would actually increase the government’s next estimate of 4th quarter market activity, from a dismal -.1% contraction to a slightly less pathetic advance of +.7%.
Now I don’t know about you, but I don’t see how a $10 billion swing in international trade could translate into such a big percentage move on a $15 trillion market economy.—Call me a cynic.
Maybe that’s why the Dow Average didn’t move at all this week. The Dow lost an ironic .1% in value this trading week. The 15-51 strength Indictor continued its contrarian ways by adding 2.7% points. Gold remained unchanged.
Take a look.
Strength kissed the Average on the lips this week, as the investment markets continue to look lost.
Don’t you be.
Your questions are always welcome. Until then,
Stay tuned…