The economy continues to give us mixed signals.  Here is a detailed list of these signals:

Positives:

1) Equity markets power higher still, S&P 500 up 17 of past 20 trading days
2) Philly mfr’g very strong, NY in line
3) Multi-family housing starts strong, still subdued new home building
4) China raises reserve requirements, Chile raises rates, prudent responses to higher inflation
5) UK retail sales good

Negatives:

1) US PPI, CPI, import prices, prices paid and received all move higher

2) US retail sales light
3) Initial claims back above 400k
4) Refi’s lowest since July ’09 with 30 yr mortgage rate above 5%