Subj : Market Action
To   : All
From : Paul Rogers
Date : Wed May 18 2005 06:27 pm

Content-type: text/plain

The CPI numbers were released this morning.  Energy and food costs were
higher, but we expected that.  But the "core" CPI, the rest, was mostly
flat.

Energy prices haven't yet filtered into the core prices, but they will.
They have to.  Manufacturers have already had all the "fat" cut out of
their processes by the likes of Walmart, and they can't just absorb
those higher costs.  Yes, some consumers are doing very well.  They
bought all those SUV's.  But there are a whole lot of consumers that
aren't, that have seen real earnings decrease over the past decade.
Manufacturers and distributors are prevented from raising prices without
losing sales, creating price "softness" in the consumer economy.

But today's report encouraged the Street.  Prices jumped higher at the
open, rose all morning and through lunch, then levelling out and holding
their gains all afternoon.  Prices increased 90% of what would be
significant and volume jumped to +12% above average.  My formula calls
that an "Accumulation" day.  There was some enthusiasm this time.
Prices are above their 20, 50, & 200-day Moving Averages.  Can they stay
there?

 Price    Vola-    Momen-   Volume   Oscil-   Summ.
 Change   tility   tum               lator    Index
 -__+     -__+     -__+     -__+     -__+     -__+

 _<__     _<__     _|__     _<__     __<_     __>_     05/12
 _<__     _<__     _|__     __<_     _<__     __>_     05/13
 __|_     _<__     _|__     _<__     __<_     __>_     05/16
 __>_     _<__     __|_     _<__     __|_     __>_     05/17
 __>_     _<__     __|_     __|_     ___>     __>_     05/18

Timing Signals:  I don't use or recommend timing signals, but they're
fun to watch.  If I did though, well, I might use something like this.
(Be warned!!  It tends to whipsaw around signal points!)

Last Signal: BUY        Date:  05/17/05 S&P:    1173
Winner or Loser:  tbd                   By:     tbd

See my market tracking charts for '03-'04 and my investment strategy
study at my website(s):
http://www.xprt.net/~pgrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html



Paul Rogers, paulgrogers@yahoo.com                       -o)
http://www.angelfire.com/or/paulrogers                   /\\
Rogers' Second Law: Everything you do communicates.     _\_V

.... Rap is to music as Etch-A-Sketch is to art.
___ MultiMail/MS-DOS v0.35

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 * Origin: The Bare Bones BBS (1:105/360)

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