PPI is up 0.7% on energy but core is unchanged. Retail Sales are down 0.2% less than forecasted. However, when considering slow down in the housing market and the auto market, this number isn't as bad.
So the tug of war continues. This is exactly what I was talking about regarding this market. One day you have concerning numbers that the investors react to, then the next day, the numbers don't seem all that bad. This is what I call whipsaw. It is best to take a position and stick with it, lest you lose money by flip flopping in this market. I made a resolve to stay with the trend and that's what I have been doing for the past 1 month.
On the trade front, Crox looks to resume their uptrend. Yesterday's sell off meant that it was time to step and buy and those buyers are getting rewarded today. Also watch the retailers which have been beaten up due to the slowing sales. I believe a lot of them have hit technical bottoms and should begin to move up a bit from here, which offers a trading opportunity. I have initiated a small call position on Target with 20 call options for June 07 strike $62 at $0.50. I may add more on weakness. I anticipate an earnings report upside as all negative factors appear in the stock price now. Report bad numbers, the stock goes up, the guidance is key for Target (TGT).
Looks like we're going to have an upday today. Good luck everyone.
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