I don't know yet how much this retail sales report will hurt the market's rally attempt, the rally overshot our target posted nearly a week ago (even when the market was still in decline), by about 2%, which is not horrible considering the uncertainty of earnings and the fact it rallied over 7%, plus the fact that the rally and target were posted days before it even started.
Last night was a tough one, the charts didn't add up, if you read "thinking Out Loud" you know what my conclusion was and why I believed the gap up in the market for this a.m. would not hold and we'd move down instead. It was all based on the 8:30 release of retail sales and the 3C charts I was seeing.
This is, as I have been saying, proof positive that the government DOES routinely leak reports as does the Fed, as do companies-to Wall Street, how else could I have made that prediction last night. Actually lets call it analysis because it was based on objective charts, not a crystal ball. So YES, the Retail Sales number was leaked and that is why we saw institutional selling into the rally yesterday.
Now, we wait, be patient and see if this one does the trick. Please though, take something away from this, understand the market is nothing like we've been conditioned to believe it is. Corruption in every corner of the market is omnipresent, I just showed you the retail sales were leaked ahead of time to Wall Street. You can't play this game based on the everyday things you see in front of you-like all those who bought that run up in prices in after hours last night-they're largely burnt this a.m.
