The market managed a rally off the lows as Walmart started the day off with a disappointing report and added pressure an already miserable retail sector. If they ain’t buying at WMT then they just ain’t buying if you ask me . If you are a retailer and you sell “cloths”, you are a dead man walking, at least that’s the impression I got from some smart retail people today. WMT sells cloths as well as some discretionary items-what a tell about how bad things really are. Dollar stores continue to be all the rage.
The “test” for the market to me is how it reacts to the unemployment figures tomorrow. ADP greased the skids with their guess yesterday. My personal feeling is we get a sell off with a number north of 600k and a possible rally on a number in the 500’s. The latter number is baked in to a degree but a much higher number and we will see some pain. It’s all lower in the end, I’m just talking about tomorrow.
Obama wants to spend trillions more and the market actually sold off during and after his speech but caught legs later in the day. Tomorrow will be a key day. I will try and post some charts in a bit.
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