The cold slap across the face of reality that was the Retail Sales numbers this morning has caught more than a few traders by surprise. Dow down nearly 200, lots of red on the screens.
What we call the “News” is really the “Old” — cold data, older information, mostly reflected in stock prices already. Hence, as Andrew Upward notes, its reputation as a lagging indicator: “How quickly the spin and rhetoric reverse course to accommodate the direction of the market!”
John Roque (Natexis) mentioned in a recent research note that EVERY time Wall Street discovers a new mantra, it ultimately fails — Green shoots, contained, decoupling, long term-investor — all end in tears and lower prices . . .