Saturday, December 15, 2007

How do I minimize inflation?

Forensic Traders Radar (day traders watch for 12/17/07)
Posted 12/16/07 (4:44) pm eastern standard time)

Symbol = EBAY
Last Price = 32.70 (12/14/07 4:oopm)
Volume = 14,210,450
Support = 32.87 (12/17/07)
Resistance = 33.22 (12/17/07)

How do I minimize inflation?

The consumer price index displayed an up tick this past week although I was not surprised since I food shop for the family. A visit to the local vegetable markets for a family favorite called ripe plantains gave a hint. For those who are familiar with ripe plantains and are Seinfeld fans just think about how nuts Kramer was about them. Well to make a long story short for many years ripe plantains, a relative to the banana, were sold three or four for a dollar. Several months ago I noticed that that the plantains were being sold two for a dollar by most merchants. I asked why am I being shorted on my plantains stash and the response given in most cases was that the cost to transport the product had risen. So it was not a surprise to hear that the consumer price index is displaying some inflationary pressures.

Several weeks ago in an earlier blog I wrote that my kid mentioned that the lines in Costco were shorter. Not today (12/15/07). The parking lot was packed and the store was bustling. I’m sure the looming snow storm in New York explains the crowd who are trying to stock up. As I sneak a peak into shopping carts to see what is being purchased this Christmas season it is very apparent food is the gift of choice today.

That is when I struck by the thought that Costco helps to minimize inflationary pressures when members team shop. Yes, buying those super size products and splitting the cost helps to stretch the weakened dollar. It requires some planning but may be us Americans need to plan a little better. So call your fellow members, discuss what products you both use all the time. You will be surprised how much you have in common. Drive one vehicle, split the cost of gas. “Costco size” inflation I say. Be efficient with the dollar, save on food and gas the Costco way, plus you get a free meal with all the delicious finger snacks they distribute. Bottom line is you do not have to shop at Costco to buy Costco if know what I am saying stock pickers.

Costco can teach efficiency to consumers, The Forensic Trader Radar (FTR) can make day traders efficient. The FTR is back tomorrow. First time visitors should click on the following links to get the flavor of the forensic trader radar and my blog’s prophetic powers.

http://forensictrader.blogspot.com/2007_07_01_archive.html

http://spreadsheets.google.com/pub?key=pWDllmclb1SZMOrfIeF8ZRQ



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Symbol, Volume,and Closing price data are assumed accurate, however readers are responsible for verifying stock market data. Bias, support and resistance is determined via proprietary calculations and should not be considered buy or sell advise.