Tuesday, February 9, 2010

It was announced this morning that consumers are paying off credit cards and purchasing new vehicles. This is now the 11th straight month showing that consumers would rather pay credit cards off. Consumers are still displaying trepidation by borrowing and not spending money out of pocket. Basically, this means people would rather purchase a new car, buy an education, or buy needed items, rather than put clothes or electronics on their credit cards.1

Hasbro showed positive earnings in the last quarter of over 77% apparently; the company sold a ton of action figures and has strong licensing revenue. New movies that are set to preview this year could help the company gain more steam as the year progresses.

Geithner mentioned this morning that there will be no double dip recession. This is a questionable statement and should not be said out loud. GDP is somewhat decent, companies are showing better earnings, retail numbers have promise – but this does not mean the situation will not turn for the worse. Globally, many countries that the United States trades with are having economic issues. Not only does this country have to worry about cash flow, bank worries, Wall Street, and the consumer, but the U.S. must be able to sell products to foreign countries. What if they do not have the money to buy inventory? The S&P is trading at 1063, pretty much flat in pre-market trading as traders try and shake off last week’s pummeling. 1046 is the next level that could possibly be reached if the market continues to sell-off. Technicals show that 2 levels were reached last week.

***chart courtesy Gecko Software’s Track n’ Trade Pro.

Past performance is not necessarily indicative of future results.