Wednesday, January 31, 2007

Market Under Pressure in Early Trading

The market has opened under a bit of selling pressure. I thought the market hung in very well yesterday, considering the nearly $3 spike in oil prices and the 12% surge in natural gas.

Of course, the FOMC announcement comes out today, so there will likely be some volatility surrounding that event. I don't expect to hear too much from them, but even a hint that economic growth has strengthened will cause market participants to push out their rate cut forecasts, and could hit the market.

It is also month end, but I think the phenomenon of window dressing is far less pronounced these days than it was several years ago.

SIRF is up +21% after reporting a great quarter. I had already taken profits, so I am not enjoying today's festivities. But at least it confirms by bullish thesis, and I will look to get back in on any weakness.

The 10-year yield is flat at 4.87%. And it is still early. I am always more worried about big up openings than down ones.


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