Retail Dominoes
The IRH or Retail Holders Index peaked on 11/15/04 and has fallen 5% since, this is a leading indicator that the consumer has cut spending due to higher oil costs and the associated stagflation.
The severity of the drop was masked over the holidays because of the lower dollar, this brought alot of foreign bargain hunters in to shop and vacation. The dominoe theory goes like this...
If consumers stop consuming, retailers stop selling, if retailers stop selling then the transports stop transporting, if transports stop transporting then the industrials stop producing.....keep your eyes on the Retailers, they will give the signal....
The severity of the drop was masked over the holidays because of the lower dollar, this brought alot of foreign bargain hunters in to shop and vacation. The dominoe theory goes like this...
If consumers stop consuming, retailers stop selling, if retailers stop selling then the transports stop transporting, if transports stop transporting then the industrials stop producing.....keep your eyes on the Retailers, they will give the signal....
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