Final Thoughts

We should get a better handle and read on the market, and the strength of the market over the next one to two weeks. The Fourth of July Holiday is over, people are returning to work and decisions are going to have to be made regarding purchases for September through fourth quarter. As you can see from an earlier article in tonight’s newsletter, I have adjusted our Price Momentum Indicator to Higher from Neutral. We adjusted to Neutral right after the first price announcement, and I think we have seen enough evidence to conclude that at least over the short term prices should stabilize and rise.

Whether this is a “dead cat bounce” is yet to be determined. We saw a typical dead cat bounce earlier this year after the January and February price announcements. It took about 60 days for the full “bounce” to take effect. Stay tuned.