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Economic data released this morning didn't sit well with the Street.
Reports a few days ago that retail inventories increased, matches well
with today's report factory utilization went down.  (Slow down until it
sells!)  The Producer Price Index increased; to be expected with the
high energy prices.  Expect that to be passed through to the CPI.  The
word for that is "inflation".  So prices understandably were down, until
mid-afternoon when China was cleared of illegal currency manipulation
(well, yeah, when it's pegged to the dollar), but action was threatened
if China doesn't let the yaun float.  The Street really liked that!
Prices rose and volume increased.

At the close prices were up nicely, but volume was still -8% below
average.  Buyers weren't enticed to come out of the closet.  The price
rise caused my timing signal to reverse to a Buy.  With this volume
divergence, I'll pass.

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

 __|_     __     05/11
 __     05/12
 __     05/13
 __|_     __     05/16
 __>_     __     05/17

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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