Crash Market Stocks - Financial Tips On Making Money In The Stock Market

After what looked to be a strong rebound in the markets yesterday, red trading continued on for Tuesday, as consumer sentiment begins to weaken once more. Analysts were hoping for the consumer confidence numbers to continue to increase into September, however, they have begun to trace back as we saw from today's released study. It was the positive performance of this number which sparked so much buying in the first place, but as I have always warned, sustainability is the key.

With consumer confidence numbers weakening, investors are worried for the upcoming unemployment data that gets released later on this week. Sure, the rate of job losses has consistently been decreasing the past few months, but we are still experiencing very high amounts of monthly job losses that will eventually take its toll. Speaking of job losses, one important element to keep in mind is taxes. In recent months, we have seen record amounts of government spending. Coupled with that, we have also seen a record amount of job losses which in turn will directly effect tax dollars. The amount of tax revenue received for the government has to be at record low levels, which is not good when you consider just how much debt spending is being done. This will be a problem that will carry into our children's generation to deal with the national debt.

Nike reported better than expected earnings today after the close, so markets could easily find there way back into the green tomorrow. However, the big question everyone is waiting for is the job losses released this Friday. UUP has been looking like a great buy as the dollar is beginning to rebound. In my opinion, as deflationary pressures continue to mount, the dollar should perform quite well. DRV is the new Direxion 3x inverse Real estate ETF. It has definitely been on the radar for me, as I believe we are near this turn in the market. Real estate is on the top of the list for next sectors to suffer, as property owners have been bunkering up the past 9 months for the storm that lies ahead. Indeed the opportunity is coming soon. Happy Trading.

Well, bulls were able to finish out their rally with a green Friday, as the markets bounced up and down today but ended up closing slightly in the green. Once again, trading remained very low as it is hard for investors to know where to go from here. Today's closing gives media analysts and bulls even more reasons to cheer on the big rebound recovery that many believe our economy is experiencing. I have expressed my personal opinions to that in previous posts, but I wanted to discuss a major element that has been overlook in these analyst's reports. That is the consumer.

When you examine the make up of the much important GDP, you will find that the consumer (consumer spending) essentially makes up 70% of the number. That means that 70% of the influence in turning this recession around has to do with the fate of you and I. Of course, from the looks of what we see on TV and from politicians, it would seem that financial institutions and corporations have bounced back and are moving forward. Although I disagree with that, there is one key element that people fail to mention in this great debate. The consumer. To think that we are recovering solely based on corporate profits and profiting banks is asinine. The consumer needs to be leading us out. As of now, that leadership is nowhere near being present.

Currently, there is about 15,000,000 unemployed Americans amongst us and that is only continuing to rise. 7,000,000 just since the beginning of the recession. Do we really comprehend the size of that number? Do we honestly feel that such a large increase in unemployment can be quickly recovered by a few trillion spent by the government? Not only that, but our personal savings rate has spiked from nearly 2% to almost 8%, just in a year. So not only have we seen massive cuts in consumer income, but we've seen a huge jump in personal savings. This is not a good mixture when trying to jump start an economy.

Coupled with this has also been the recent increase in gas and energy prices. Paying $2.50-$3.00 per gallon adds up and cuts into that much needed income for many families. Also, we have seen home values drop anywhere from 20-60%. To have the largest asset for most families be reduced by 50% in just a year has major effects not only on spending but overall consumer sentiment. This is probably why we continue to see low consumer sentiment numbers out of Michigan.

Media and politics can preach a recovery as much as they want to, but in the end it will be the consumer that drives us out. As of now, the consumer is hiding, protecting and preserving the assets they have left. What corporate gain we have seen has been largely induced by government spending and stimulus packages. Be assured that if unemployment numbers continue to come in at what we've seen and home median prices continue to fall, consumers will find it no reason to come out of hiding. In turn, we should continue to see that 70% of GDP remain very dismal. Look to the consumer, which lately, we have not. Happy Trading.

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Markets responded to a very disappointing consumer confidence report on Monday. After a very optimistic number of 54 last month, the market was hoping for a two month consecutive 50+ number to help confirm the belief of a stabling economy. However, June's number came in at 49, which was well below the expected 55.3 number. The results sent markets down from the opening, which the Dow eventually closed at 8447, down 82 for the day.

Today's number shows that we can definitely wobble in data from time to time and that an increasing number does not always mean that it is sustainable. I will not be surprised to see if much of the data throughout the rest of the year continues to tail off, especially if we cannot sustain the type of government spending and bailouts we have issued thus far. It is no wonder why economic data looked much better this past quarter. Trillions of dollars of new money helps a bit.

SRS showed weakness today, as I expected, considering the Treasury is expected to unveil their new PPIP plan tomorrow. As a hedge, I went in today and pulled the trigger on some Kimco and Simon. If the plan indeed is unveiled, many investors could falsely see the plan as the solution to the big commercial real estate problem. I would not be surprised to see a healthy bounce from the bunch tomorrow and/or Thursday. Happy Trading.