Monday, March 31, 2008

Chicago PMI Throws a Monkey Wrench Into the Market

The Chicago Purchasing Managers report confirmed the Philadelphia manufacturing number from March 20th and the Bulls are celebrating. The reading came in at 48.2 for March, much better than the 44.5 in February, but the "prices paid component" (PPC) came in at 83.9, MUCH higher than 80, a number that the bulls didn't want to to see broken. Inflation in the PPC may hold back a lot of buying, so we recommend exhibiting caution until the PPC is reported in Tuesday morning's ISM data. See our explanation on the ramifications of this data on your investment strategy for this entire week in "The Psychology in the Upcoming Week's Data" below. Thanks for your continued support.

The Psychology of the Call team.

1 comment:

Anonymous said...

thanks, the ISM price component will be of significance, no doubt ..