IMPORTANT ECONOMIC INDICATOR

Capacity Utilization Chart

      Note the pick up in auto parts with low points and high points.

WAGE PRESSURE COMING

With spot labor shortages showing up, it can't be long before wage pressures start rising.

Higher wages in this whole economic recovery picture is the proverbial other shoe.

It's not something either the Fed or employers desire, at least not at this time. Sure the Fed will deny it, claiming they would like to see a little inflation to ward off any looming deflation. But be careful what you wish for. A little could easily turn out to be a lot after one of the greatest counterfeiting schemes of all time.

Truth is wages have been flat for years. And there's much pent-up pressure not to mention frustration and concern. Toss in higher minimum wages, food and lodging costs, retailers less inclined to just suck up higher production expenses and you're looking through the economic looking glass clearly now.  

Higher wages are the only real antidote for a shrinking dollar.

http://www.bloomberg.com/news/2014-04-16/tight-job-market-in-u-s-cities-prompts-higher-pay.html

FED FOLLY

We've been suggesting for some time now that when the Fed has played its final tapering ploy they will wind up behind the curve. Practically everything the Fed does conjugated with media mesmerizing plays down the threat of inflation.

Any and all price hikes, according to this chorus, are but mere aberrations notwithstanding that one of the country's largest workman's comp medical providers just raised its prices for the fourth time in three years.  

There ain't no hedonic potion here just hard, real facts. Nor are these increases munchkin-sized.

Calling it a scam would sound too cynical. Calling it what it is, bureaucratic fumbling and bumbling, guess work of the first degree, is less cynical and more accurate. And far more dangerous.

http://online.wsj.com/news/articles/SB10001424052702304640104579490022832019960?mod=hp_opinion&mg=reno64-wsj

CORRECTION?

Despite the recent turmoil in the Nasdaq, someone has been buying the dips. Although down from its March high, the index has yet to register a pullback of 10% in what many would consider a true correction.
http://blogs.marketwatch.com/thetell/2014/04/15/chart-nasdaq-composite-flirts-with-correction-territory/

STOCK MARKET POETRY

If you're a lover of poetry....and we're uncertain everyone is?
....you might want to weigh this...if you're in the stock market gambling biz....http://www.dailyspeculations.com/wordpress/?p=9253

SMOKING BUBBLE

Most of us are familiar with the textbook definition of inflation.

But here's another one with a slight variation from five burning questions presently puzzling investors, one of which has to do with currently smoking-hot marijuana stocks: "Too many investors are chasing too few stocks with too little in real revenue at this point."

Couple the run-up in share prices with media mesmerizing, an ever-present constant, toss in investor fears about missing out and you have the makings of the big B word.  

http://business.financialpost.com/2014/04/11/5-burning-questions-investors-have-about-markets-right-now/

EASTER INDEX

It's a holiday-shortened week. Notwithstanding today's apparent upturn, the market's been in a sell-off led for the most part by tech stocks. So if you're searching for an omen, this week's focus could center on what techs do and where the market finishes the week.

http://blogs.marketwatch.com/thetell/2014/04/14/when-stocks-are-down-year-to-date-at-easter-thats-been-bad-news-for-the-rest-of-the-year/

FLASH BOYS

Here's more of a commentary than a review of Michael Lewis' new book about Wall Street, Flash Boys. It's a commentary every young and old seeker who can read ought to read.

In case you don't know, Flash Boys is about electronic cutting to the front of the line. An ultimate act of contempt, front running any and all who have the audacity to play by the rules. In the electronic age rule players and snoozers equal losers.

Reading is the lost art, reading to mine for meaningful information even more so. Forget old guys.

If it's superficial it rules. Even better if it's quick and superficial. Devoid of lines. Forget Jones. It's not about whatever happened to him. Thinking, rule playing, integrity, now there's some real pain.

http://t.ritholtz.com/bigpicture/#!/entry/flash-boys-rules,534a918a025312186cf5af24/1

THE CHASM WIDENS

We noted in an earlier post, The Chess Match, the role natural gas plays in this scenario. As the lines in the sand get drawn the energy sector will become more volatile.

http://www.reuters.com/article/2014/04/12/us-ukraine-crisis-idUSBREA3A1B520140412

NOW OR LATER

Some investors have been looking for a market correction for some time. With the past week's downturn many are asking: "Is this it?" Here's the view of one strategist.
http://blogs.marketwatch.com/thetell/2014/04/11/a-bigger-10-15-correction-is-coming-this-autumn-bank-of-america-merrill-lynch/


http://blogs.marketwatch.com/thetell/2014/04/11/a-bigger-10-15-correction-is-coming-this-autumn-bank-of-america-merrill-lynch/