A Consumer Spending Dynamic Worth Watching For Equities

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Consumer spending has been strong all year as trends from e-commerce to services have led to a more balanced spending profile by Americans. Bill Baruch breaks down what that means for the stock market and the Fed.

    Bill Baruch, President & Founder, Blue Line Futures

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with the move that we’ve had a continued consolidation at minimum, I mean, that’s that’s healthy. We could see a little bit of pullback. Nothing moves in a straight line. But here is to say to their point around Thanksgiving and a little bit after around Christmas and a little bit after we can see a little bit of softness in the market, I wouldn’t be surprised at some points to see a little bit of pullbacks.

Bears get a little excited. But at the end of the day, and I did point to the stronger data today from building permits and housing starts at the end of the day, I do think the data continues to slow. The real question is the consumer, and I’m confident the consumer is going to slow in November and December. I think holiday spending tightens up.

You look back at retail sales, which came in strong this week, You look back, we’re not not really a strong number, just better than expected. But if you look back at retail sales, November, December of last year, we really tightened up and that’s when people actually saved money to replenish the pocketbook from traveling all year. So I think that we could see that that’s going to be a gift to the Fed, to be gift to the market.

There’s going to be volatility. There’s going to be days that we kind of see the market gyrate around. But I mean, right now I’m not seeing anything that says we have a pullback. Yeah, I mean, we’re not really seeing anything as of now

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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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