Dow-n

[truetraderone]

http://www.marketwatch.com/news/sto...x?guid={E5861DF7-D349-4393-BB83-C3FDC37A3C94}

MARKET SNAPSHOT
CPI, housing weakness seen weighing on stocks
CPI heads up stack of reports to come; Wal-Mart, H-P results set for release
By Carla Mozee, MarketWatch
Last Update: 12:01 AM ET May 12, 2007


Inflation, housing weakness to weigh on stocks
SAN FRANCISCO (MarketWatch) -- U.S. stocks will lose ground next week, pressured by a series of economic reports and corporate financial results that are expected to show the impact of a rise in consumer inflation and further weakening in the housing sector, market strategists said.
The reports, including the consumer price index, housing starts and building permits are expected to add to recent economic data showing higher prices and slowing economic growth. Financial results from Wal-Mart Stores Inc. (WMT : Wal-Mart Stores, Inc
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Last: 47.78+0.03+0.06%

4:00pm 05/11/2007

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WMT47.78, +0.03, +0.1%) and Home Depot Inc. (HD : Home Depot, Inc
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Last: 38.86+0.07+0.18%

4:00pm 05/11/2007

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HD38.86, +0.07, +0.2%) , which will follow weak monthly same-store sales and unexpectedly soft retail sales data from the government, may also weigh.
"The overall trend [in the market] will probably be down next week," said Robert Pavlik, portfolio manager at Oaktree Asset Management. "The earnings season is [nearly] over, and there's going to be a refocus or tension back to the economy and concerns about inflation."

 

[truetraderone]

It's what the old folks used to say was the "hover effect."

Investors, too myopic to view the large trend, continuously trade counter-gravity until they "see" losses.

 

[loufah]

Has anyone gone back and checked how often these Marketwatch weekend articles (where they predict which way the market will go in the next week) wind up being correct?

 

[SiSePuede!]

I feel like I gave up watching CNBC and ended up reading it with Marketwatch sometimes. It's a good place to get popping news, but other than that it's usually pretty bad. I read an article from Hulbert the other day where he semi-predicted that China's overseas investment money would come into the US which makes quite literally no sense...but it was his pump I guess.

They may be right in this case though...HD numbers sound bad and if CPI rises more than expected I'm not sure anyone will feel like buying. That being said, if nothing happens, up we go!