We had weak U.S. economic data released this week. Industrial activity is weakening fast and retail sales for November were mediocre expect at high-end and specialty retailers. In addition, consumer confidence dipped below the previous month and jobless claims were higher than Wall Street expected. The 10-year bond fell to an interest rate of 4.425% this year, a level not seen since January.
The action in the market definitely looks like one in which strength over the next month will be in healthcare, drugs, and food as people seek safety stocks in uncertainty about how bad of a recession we are going to get over the next year. Also these sectors are finally coming back after hitting recent lows a few days ago.
In addition, the survey of bulls versus bears continues to remain skewed towards a high level of optimism which is not good for further advances in the market anytime soon.
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