Last week there were more NEGATIVE than POSITIVE developments, and short term investors sold stocks as a result.

Below is a succinct list of last week’s events:

Positives:
1) US exports hit record high in April (somewhat old news) and lower than expected deficit will help Q2 GDP
2) AAA said gasoline prices fell another $.05 to the lowest in two months
3) ECB says they will raise rates again to further adjust relative to inflation
4) Canadian unemployment rate falls to 7.4%, the lowest since Jan ’09

Negatives:
1) Initial Jobless Claims disappoint again, staying above 400k for the 9th straight week
2) May Import Prices rise at the fastest pace since Sept ’08 with the help of the growing cost of doing business in China
3) Germans vs. the ECB, Schaeuble vs. Trichet in a “smackdown” showdown has European credit markets fast losing patience, CDS in Greece, Ireland and Portugal reach fresh record highs
4) ECB says they will raise rates again when some in the region certainly can’t handle it, euro reverses lower due to this concern and #3 above
5) The Hang Seng index in Hong Kong closes at 12 week low as property worries spread.