Global Markets Weaken With Data

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China flash manufacturing data fell 49.6 vs prior 50.5, confirming a larger slowdown in the country than expected. This data combined with a weaker U.S. PMI Mfg Flash Index (53.5 vs 55 expected, and prior 54.4) was all investors needed to launch some selling in the U.S. Other economic data in the U.S. was no help either as taken collectively were uninspiring: Jobless Claims came in at 326K vs 330K expected, and prior 325K; FHFA Home Price Index at 0.1% vs .0.4% expected, and prior 0.5%; Existing Home Sales at 4.87 M vs 4.9 M expected, and prior 4.82 M; and finally Leading Indicators (0.1% vs 0.1% expected, and prior 1%). Frankly, we’re not getting the supporting data to buttress the case for a stronger economy many have asserted is forthcoming in 2014.

One note on Jobless Claims is 1.4 million people have fallen off the rolls with this report. They are in limbo now and won’t be a factor in the upcoming January unemployment rate announced in February. This could imply an unemployment below 6%, which would be a shock. Basically it’s fun with statistics for the BLS.   

So forget about the IMF, World Bank and various Wall Street prognosticators telling you there is growth. The data don’t support that yet.

Earnings data was also a mixed bag with big winners from Netflix (NFLX) and eBay (EBAY), while Macdonald’s (MCD) met expectations and Nokia (NOK) tumbled.

Investors have their eye on the Fed policy announcement on the 29 th.  

Leading sectors Thursday primarily included precious metals and miners such as Gold (GLD), Silver (SLV), Gold Miners (GDX), Junior Gold Miners (GDXJ) Silver Miners (SIL) and Bonds (TLT) in a flight to safety. All other market sectors experienced substantial losses.  

Today we featured a short video on PowerShares DB Double Long Gold ETN (DGP) f rom both weekly and daily chart perspectives.

Our staff also puts together the daily top 20 ETF market movers by percentage change in volume for gainers, decliners and emerging volume. This is a tool that investors can use to shorten their search for suitable ETFs, without being dominated by typical high volume issues or leveraged and/or inverse ETFs.



Perhaps now the rising trend is actually ready to change or just correct. Certainly a correction is overdue right? Add to the mix the Fed policy meeting on the 29 th could certainly change things.

Let’s see what happens.

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