Tag Archive for recession

Sterling Market Commentary for Monday October 22nd, 2012

A Few Thoughts on Monday’s Market: The overall market is showing considerable weakness, with the high tech sector in an outright bearish trading pattern. A lot of the weakness in the high tech sector can be attributed to a pull back in the shares of Apple, Inc. ‘AAPL’. However it is not just Apple that is causing the weakness in the high tech sector, there is considerable weakness in the WinTel world, those high tech companies that are focused products utilizing either Microsoft or Intel architecture. I think that the stock market is signalling a pullback in the U.S. Economy. I also think that this signal would be a lot louder and clearer if it was not for the Quantitative Easing programs of the Fed and their market manipulation effects. In looking at the charts from Friday’s activity I noticed that the M.S. Consumer Index ‘CMR’ had not yet broken its recent upward trendline. I am keeping an eye on the ‘CMR’. If we have another couple of down days and this index breaks its upward trendline, then I see this as a potential confirmation that the U.S. Economy is headed back into a recession…..