Hey readers,
Last week we saw the market drift up and down, not really gaining or loosing much ground over the course of the week. This weekend I expect more the same depending on a few key pieces of economic data which are due to come out mid week.
The most important factor of the economy right now is the consumer. When the consumer recovers; the economy will recover. We will see a number of economic indicators this week which will give us information about retail sales, inflation, and more data on manufacturing. The most important of which will be those numbers on retail sales. After falling last month; Wall st. is expecting retail sales to be up around 1.6% in August.
The last few weeks we have seen the US Dollar make new 52 week low after new 52 week low. I expect to see this trend continue. So as with any other angle; the question is how can we play a trend like this. There are a few ways we can use this trend to make us money; the first of which is to buy gold. As the dollar goes lower and lower; gold continues to move toward all time highs. Just as I expect the dollar to continue to fall in value, I expect gold to continue to climb. The second way we can play this trend is to look at who could possibly benefit from the falling dollar. The answer is simple; multinational corporations would very much so benefit from a weaker dollar. More specific; companies like General Electric (GE).
We also see a few companies reporting quarterly earnings this week. The main companies to watch are Best Buy (BBY) and Kroger Brand (KR); both of which report on Tuesday morning at the bell. Make sure to check back later in the week for my midweek update. I have an idea I am currently researching which has the potential to make us all some big profits if we see the right catalysts.
I’m in this game to make the big bucks, I hope you are too.
– Leverington 9
