Last week, more NEGATIVE than POSITIVE developments were announced and the stock market continued to be volatile.

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

Positives:
1) Bilateral intervention halts yen spike.
2) China and India continue to tighten policy to offset rising commodity prices.
3) Philly Fed survey best since ’84 and NY also good but old news?
4) Housing starts awful, but I say good with too many existing homes for sale.
5) Europe agrees to expand EFSF and gives Greece more rope. Spain sells 10 and 30 yr paper successfully.

Negatives:
1) Japan cannot stabilize damaged reactors but hope is alive that they’re getting close.
2) Commodity inflation still elevated as CRB back to flat on week on rebuilding bets and Libya/Bahrain unrest after mid week selloff.
3) CPI, PPI and Import Prices rise above forecasts.
4) Will China and India engineer a soft landing with more policy tightening?
5) Housing starts awful, bad for construction.
6) Europe will learn hard way that more debt on too much debt won’t end well, Moody’s downgrades Portugal to in line with S&P.

Source: The Big Picture