Markets took a breather after last week’s boost. The Dow closed off 105 points to 27,909 on light trading volume. Markets are still in rally mode according to the gurus at IBD and BTS.
Jim “Mad Money” Cramer on CNBC called last week’s jobs report the best he had seen in his entire life and he is 64 years old. He said this jobs report tells him we will win the China trade war and that China might even have to consider moving jobs to the US in order to sell product into the US. Stay tuned.
Progress towards a trade deal continues and both sides now are saying the other side needs the deal. Chris Low, guru economist with FHN noted that China needs the deal because of an unusual gap widening between consumer inflation and producer inflation. Due to food inflation, consumer prices in China are moving higher while producer prices are moving down reflecting discounts on exports in the face of tariffs. The bottom line is that consumer expenses are rising while wages are flat to down which makes for an unhappy consumer and slowing economy. The CCP needs to act to reverse this trend.
The Boy Scout Christmas Tree sale is going well. It was a busy weekend. The lunkheads are working hard except for a couple of first year 12-year old’s who are scared and go hide behind the tree piles and drink hot chocolate until an older scout puts them to work. Some things never change! The girl scouts are at the tree lot for the first time ever and they are learning tree types, how to talk to customers, carry and load trees on cars and then tie them down. They are learning the joys of being wet, cold, tired and hungry and ……loving it!