Inflation problem

12/14/07

Economic number core CPI rose 0.3% ( expected 0.2%) give indication that Fed may not reduce the interest rate on next meeting to avoid recession. So, US stock market fall 178 points and closed below the 13400 mark. Dow index was down 2.0% for this week. Similar with the last Fed rate cut meeting week that all stock index was trading down. The risk of US economy recession is getting higher than economists thought in summer time. Well, look at the Dow/Dow composite/S&P indexs charts, all are telling us that no more bullish run.

Since mid years, AAPL, RIMM, GOOG, and BIDU are leaders stocks to carry whole US stock market til today. But, RIMM recently is getting weak compare with others three. Solar stocks group are also performing well at last quarter this year so far. Watch those stocks if they are heading higher or not, it indicates the real direction of the market.