Day trading and the Economy from S&P 500 emini futures day trading coach

U.S. consumer spending tumbled in September and a purchasing managers' survey showed the biggest deterioration since 1968, foreshadowing a deepening economic slump. Consumers have thrown in the towel it seems. Some economists think that they have no choice but to cut back on spending in a very big way. There is speculation that this is going to be a fairly deep, long recession.

Job losses, increases in food and fuel costs and falling property values brought an end to the longest expansion in spending on record and made the economy the most important issue in next week's presidential election. The collapse in lending and sentiment this month indicate Americans will keep retrenching.

Treasuries rose, with two-year notes headed for the best month since February, as slowed consumer spending added to speculation the U.S. economy will continue to deteriorate and boosted demand for the safest assets. U.S. debt gained after a government report showed personal spending fell 0.3 percent in September, more than forecast, and the Federal Reserve's preferred measure of inflation cooled.

Futures on the Chicago Board of Trade show an 84 percent probability the Fed will reduce its target rate to 0.5 percent at its Dec. 16 meeting. The odds a week ago were zero. The rest of the bets are for a quarter-percentage point reduction.

May 19 SP 500 Daily Breaking the Trend Line

SP 500 Daily, we have broken the Trend Line, we could see a little consolidation in this range until the next round of news to send us in a direction.

Oil is going to hit our market harder this month if we break $140 a barrel. Today we hit 1323.875 in Electronic trading. Watchout middle america your real income is dropping.

It seems the Fed is finally seeing the light of day and moved out of their cave. Announcing that there is some inflation and that out side of oil and food there have been price increases. Makes it sound like the bankers only eat expensive things that have really been affected by shipping and gas prices.

Grains and Food around the world

Thailand and India (the number 1 and 2 rice exporters in the world) have banned most rice exports

China and Vietnam have implemented food export controls

Rice prices have soared by up to 70% in world markets

Philippines must now import rice to feed its growing population

The Wall Street Journal recently reported the worst case of food inflation in the US in 17 years

There have been food riots in Mexico City, food strikes in Italy, and violent protests in many areas of Africa, South America, and Haiti

UN representatives are encouraging the EU to relax their opposition to genetically modified foods

Millions of people in the emerging middle class of China and other Asian nations are demanding more meat in their diets, as they associate meat-eating with prosperity

Grains are experiencing record demand for use as animal feedstock

In the United States this year, nearly a third of the corn output will be used to make an estimated 9.3 billion gallons of ethanol (a lower priced oil alternative)