Retail sales data was huge catalyst

I said this morning pre market that the retail sales figures crossing the wires was looking better than most analysts were expecting. So many of the analysts were gloomy on the retail sector and that weighs heavily on the economic outlook in general.

When the numbers were coming in better than expected I said this morning that in addition to them being better than expected it was also a psychological boost. Investors and other large money movers were depressed over the potential economic troubles being suggested by weak consumer spending (as measured at least by retails sales data). When the better numbers were crossing that was the anti-depressant pill the market needed. The gloomy view of the economy was lifted, for now anyway.

A toned down sub prime view today helped as well. What was big news yesterday today was not being touted as much and that helped to ease some fears as well. Has the sub prime issue gone away? Don't count on it. we will hear sub prime for a long time to come.

For now rejoice in that we broke out of the 5 week long trading range and that is a huge psychological boost for all. And signals to others who have been waiting that the water may be OK to come in now. I'm not taking the yellow flag down just yet. That is the first thing the bears would want, but they won't get that from this trader. I will keep my guard up until I see the bear tracks leading away from Wall Street.

More commentary later as well as a wrap up of the portfolio holdings.