I'm still keeping my powder dry
Steve Cook on Disciplined Investing


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Have You Seen This?

Normal 0 MicrosoftInternetExplorer4 Economics

   This Week’s Data

    Second quarter productivity rose 6.4% versus expectations of a 5.5% increase; however, the first quarter number was revised from up 1.5% to up only 0.3%, taking a little starch out of this better than anticipated result.

    Second quarter unit labor costs fell 5.8% versus estimates of a 3.8% decline.


    Better than expected corporate profits doesn’t mean economic recovery:

    Debt to GDP (graph):



Here’s a new (and very scary) analysis of the economic impact of Obamacare on wages:

    Stalling on free trade:

    Greg Mankiw analyzes ‘cap and trade’:

  International War Against Radical Islam

    Christopher Hitchens on Clinton diplomacy:

The Market
    The indices (DJIA 9337, S&P 1007) closed within their up trends off the March lows (8536-10234, 928-1137).  The S&P remained above the 1004 resistance level despite yesterday’s mild sell off.  This is the second consecutive day.  Volume was very light and the breadth indicators are narrowing.  As I said yesterday, the S&P seems to be struggling just as it did in its first challenge to 947.  I continue to hold fire but my finger is on the trigger.


    David Rosenberg on the Market:

    Yesterday, the biggest headline was that investors were focused on the headlines for the rest of the week.  First, it is a big week for economic data (productivity, inventories, trade deficit, budget deficit, jobless claims, retail sales, consumer price index, industrial production, capacity utilization).  Second the FOMC is meeting today and tomorrow; and the chatter was centered on what, if any, policy changes may occur (and be communicated in the accompanying Fed statement).  Finally, the Treasury has another big auction--$75 billion in bills and notes.

Posted 08-11-2009 8:26 AM by Steve Cook