The Power of the Cycle

You've probably heard me say quite often, "Once Wall Street puts a cycle in to effect, there's not much that will stop it, not news, economic reports, nothing; all that will be discounted on the next reverse cycle."

As for this morning's reports, they come in the way of the continued PMI reports falling off a cliff. We have China's PMI at 50.7 on a continuing downtrend and inching closer to contraction, the E.U's PMI is at 50.4 a mere .4% away from contraction.

Today the U.S. will release it's ISM, it will be horrible, keep watching this week though as the market most likely shrugs off bad economic report after another until Wall Street has finished the cycle that has probably cost them close to a $200 billion to put together.

We've seen it many, many times.

One final word of caution, don't get complacent this week, Wall Street still has to play the game.