Euro
Oil
Gold
Today they released the PPI:
Stock futures dropped and the dollar rallied as the PPI figures were higher than expected, while the Empire Manufacturing survey was weaker than expected.
The dollar has rallied 3.3 percent this month, including an 0.9 percent gain overnight. U.S. stock futures are down, but only by a couple points.
US producer prices rose more than expected in November, lifted by a surge in energy costs, and recorded the first year-on-year gain since last November, according to a government report on Tuesday.
Separately, New York state manufacturing unexpectedly weakened in December, signaling the recent revival in the factory sector is slowing, the New York Federal Reserve said.
Although these reports were not seen as positive signs for the economy, the industrial production report was more encouraging. That showed industrial output rose firmly in November as the manufacturing sector extended a recovery that economists hope will help turn around the ailing labor market.
The Labor Department said the seasonally adjusted index for prices paid at the farm and factory gate jumped 1.8 percent, the largest gain in three months, following a 0.3 percent rise in October.
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Rising energy prices?....look at the chart on oil. You can see from the charts above that inflation is not going to be a problem. It is the cover story to move the dollar higher and Gold lower. The Wizard is on full misdirection and confusion mode now. The bottom line is that there will be DEFLATION and a weaker economy NOT inflation and a strong economy. The numbers are absurd and are laughable.
The only story more ridiculous than inflation is the economy is bottoming story.
Here is thae state of the US consumer:
Capital One, Discover Credit Card Charge-Offs Rise
Capital One Financial and Discover Financial Services reported that credit-card charge-offs rose in November -- a sign that consumers remain under stress.
In a regulatory filing Tuesday, Capital One [COF 40.18 -0.87 (-2.12%) ] said the annualized net charge-off rate -- debts the company believes it will never collect -- for U.S. credit cards rose to 9.60 percent in November from 9.04 percent in October.
In another regulatory filing, Discover [DFS 16.30 -0.19 (-1.15%) ] said its charge-off rate rose to 8.98 percent from 8.54 percent after two months of declines.
"American consumers are still hurting and especially coming into the Christmas season," said Ken Crawford, senior portfolio manager at Argent Capital Management.
Capital One, the third-largest U.S. issuer of Visa-branded credit cards, said the accounts at least 30 days delinquent -- an indicator of future loan losses -- went up to 5.87 percent from 5.72 percent.
However, Discover showed a small decline in its delinquency rate to 5.65 percent from 5.72 percent.
Credit-card charge-offs and delinquencies usually track unemployment, which inched down in November to 10.0 percent from a 26-1/2-year high of 10.2 percent in October.
Still, 11,000 people lost their jobs last month, and analysts estimate unemployment will remain at high levels through 2010.
As card losses rose to record highs in recent months, lenders closed millions of accounts, trimmed credit limits and slashed rewards. The companies are also raising fees and interest rates ahead of a new consumer-protection law.
THE ECONOMY IS BASED ON CREDIT AND JOBS EXPANSION. THE WORLD ECONOMY IS BASED ON THE US CONSUMER!!!!!!!
The idea that there is infaltion and the dollar rises and Gold drops has to blow the minds of the traders. If you hold Gold the inflation numbers make you want to hold Gold and short the dollar. The Wizard is good at what he does. Up is down and left is right. Keep your eye on the final destination.
Notes:
GDX 48 is just below 50 average for the second time in a month. MACD is below zero I'm guessing that after all the hype on Gold it will break this time support is at early november low near 42.
Yesterday the Wiz added V to the S&P 500. The stock has made a new hgh at 85 today ...see news above on COF
Remember Friday about the confident consumer and increased consumer spending?????
Mikey
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