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The Commerce Department released some more data today, and we saw more
analysis and reaction from yesterday's data.  Personal income was up
+0.7% (not mine!), while personal spending rose +0.6%--at least we got
that right side up.  Personal consumption was revised upward from +0.6%
to +0.9%--which may help the economy, if not their savings accounts.
The UM sentiment index was down from 87.7 to 86.0.

I felt some of the reaction yesterday was dangerous.  Rather than
judging the numbers themselves, some analysts were trying to second
guess what the Fed's reaction to the numbers would be.  Strategically
it's MUCH better to learn how to do your own insightful analysis, take
your own position and correct your errors than to become the "second
mover", letting someone else "steal the march on you" and always play
catch-up.

Today's action was subdued.  Prices were flat and tightly constrained.
Volume, ahead of the holiday weekend, was down -30% below average.  So
today didn't reveal anything about the Street's attitude.

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

 __>_     __>_     __|_     _|__     ___|     __>_     05/23
 __|_     __>_     __|_     _|__     __|_     __>_     05/24
 _|__     __>_     __|_     __     05/25
 __|_     __>_     __|_     __     05/26
 __|_     __|_     __>_     _     05/27

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{at}yahoo.com                       -o)
http://www.angelfire.com/or/paulrogers                   /\\
Rogers' Second Law: Everything you do communicates.     _\_V

... Sturgeon's Law: 95% of everything is crap.
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