Saturday, June 14, 2008

Prices Stay,Product shrink.

There's a reason why the tub of ice cream you bought last week looks a tad smaller than ones you bought last summer.
It is.
Many major ice cream makers, hit by higher dairy costs, have shrunk their standard containers to 1.5 quarts from 1.75 quarts, about 1 cup less.
Downsizing is nothing but a sneaky price increase.Driving forces behind the downsizing:- commodity costs are way up. So are packaging costs. Manufacturing and transportation costs also have increased significantly.
Typically, shoppers are asked to pay more, but these are not typical times. Raising prices when strapped consumers are price-sensitive can be a formula for disaster. That's why there's often less in the box instead.
Many were from the most familiar brands. Companies don't like to discuss it, but here are examples:
•Less crunch.Frito-Lay has cut the number of chips in bags across all brands
•Hold the mayo. A jar of Hellmann's mayonnaise that was 32 ounces is now 30.
•Spread thinner. Shedd's Spread Country Crock was shrunk from 48 ounces to 45, due to higher commodity and energy costs.
•Grain shortage. The price of grains has been rising for a while, in part due to increased demand for corn to produce ethanol. Kellogg downsized Frosted Flakes, Rice Krispies and Mini-Wheats in 2006. Boxes shrank from 24.3 ounces to 24 and from 19 ounces to 18.
•Slippery soap. Early this year, Henkel of America downsized its Dial soap bath bar from 4.5 ounces to 4.
•Less bountiful. This spring, Bounty cut the number of towels on a roll from 60 to 52. Procter & Gamble spokeswoman Celeste Kuta says the reduction was because the sheets are now "improved" and thicker.

Tracking the Dow on Friday,13/06/08


9:30am--Spike-up 70.00 points.
The CPI report served as a rallying point Friday for the stock market, which was relieved that it wasn't any worse than feared. (rose by 0.6 percent in all)
10:30am--The pullback to MAV.
An earlier Hangman + graveyard doji is a sign of sell down but will touch near MAV before another bounce near noon.
11:30am--Bearish Hangman.
The bears in control at this moment of time and will drag it to the MAV.The University of Michigan consumer sentiment index came in lower than expected, falling to 56.7 in June, below the anticipated 59.0 level, and significantly lower than the 59.8 reading in May.
12:30noon--HAMMER.
The bulls taking lunch time break.The overall candlestick is a shaven bottom bullish candle.Look to buy anything below the MAV.as the chances of upper shadow covering is a sure thing.
1:30pm--Bearish spin.
A small technical rebound to MAV.with shooting star.Wait for confirmation.
2:30pm-There were 2 double bottom between the dragonfly dojis half an hour earlier.
Buy,Oil prices lost steam ,July delivery settled $1.88 lower at $134.86 a barrel.
3:30pm--The doji day,tug of war between bull & bear now.
The bears gave up their penetration below the MAV.
4:00pm--Closing bell,the bulls have overwhelmed the day's market.

The Dow's enroute to recovery.


"The inflation news was certainly not good, but what's helping the market is all the talk about strengthening the dollar and bringing oil prices down," said Peter Cardillo, chief market economist at Avalon Partners.
"We're seeing jawboning from Fed officials, Treasury officials, central bank officials about boosting the dollar, which could drive out some of the speculation in commodities markets," he said.