Will Stocks Keep Sliding?

I predict additional stock market declines for Thursday, December 12th, 2013  

The Fortune Teller Speaks:
Stock markets will likely continue to decline today as investors weigh the implications of today’s employment and economic data against possible Fed movement and a possible budget deal in Congress.
 
All Eyes on Wall Street
All eyes on Wall Street will definitely be focused on the jobless claims report and retail sales report which were released this morning. Weekly Jobless claims jumped from 335,000 claims to 368,000 claims for the first week of December, and the retail sales percentage rate stayed at .7% which is not great considering that we are in the busiest shopping season of the year. Investors will likely be weighing the lackluster data against what the Fed will do in response in terms of ‘to taper or not to taper.’  Meanwhile, Congress has (allegedly) reached a new budget deal as well, which could throw investors off if the deal falls through. Still, all eyes on Wall Street will likely be focused on how the Fed will react to today’s economic data, which could be a “good news is bad” kind of reaction.
 
We also have a Import Price Index Report which showed a slight decline from .7% to .6%, and we are due for a Business Inventories report at 10 AM EST; both of these reports will be good data to read but not likely to sway investors one way or another. In short, all eyes are on the Fed and the bulls are going to fight the Fed as hard as possible.
 
Hindsight is a Beach and We’re Playing on It:
Monday and Tuesday we were 100% correct, and yesterday was a huge selling day as the S&P 500 (NYSEARCA:SPY) lost 1.13%, the Dow Jones Industrial Average (NYSEARCA:DIA) lost .81%, and the NASDAQ 100 (NASDAQ:QQQ) lost 1.14%. As always, I do not care where the stock markets go, just as long as we are correct!
 
Greed or Fear?
Fear is definitely in control right now, however fear is standing by to take over any minute, especially if the Fed allows for any more records.
 
Fun Fact:
A cooling pump on the International Space Station has failed. It made the news but NASA does not seem to worried about it.
 
My Secret Sauce is Red:
I think the bears will continue to maul the bulls. May the bears be with us today.                           
 
This stock market forecast is for educational and informational purposes only. It is not intended to be investment advice nor an investment recommendation. Past performance is no guarantee of or indication of future performance and your performance may vary widely from any that may be indicated in this column. There is risk of loss in all investing and trading activities and you should consult your financial adviser before making any investment decisions.

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