Thoughts for the week

This week will be dominated by two things: economic data and options expiration. Options expired last week, and I think that applied some up pressure that forced some short covering. That pressure is gone for now. The economic data probably won't show a strong and growing economy without inflation.

In the meantime, some interesting tidbits

HOUSING
The CEO of KB Homes has left. Classic rat leaving a sinking ship.

RETAIL & CONSUMER SPENDING
Walmart is slashing prices to jumpstart a holiday boom.

OIL
Prices hit $61 and have eased again. Supply is actually tighter than it may seem. Patience is needed here. The proposed offshore ddrilling restrictions do affect companies like ESV to a certain degree - but they have left US waters for greener pastures elsewhere anyway.

INDUSTRIAL PRODUCTION
This week will likely show slowdown outside of aerospace. Avoid industrial or machinery not tied to aerospace

SEMICONDUCTOR
Volume of chip production remains high, but ASP (average sales price) pressure is strong. Only niche semi stocks or semi machinery stocks are worth considering.

DEFENSE
The heyday is over for now. Companies like Lockheed Martin look great based on historical business, but I really wonder if the Defense spending can grow to maintain their success.