Wednesday, January 09, 2008

When Will The Pattern Be Broken?

I hate to see the market down, but I also am tired of all of these strong opens that fade into the close. Yesterday's late day selloff was very disheartening for the bulls. Maybe we can break the trend today, and have one day where the market closes higher.

Goldman Sachs (GS) made comments this morning that they think the trend in jobs mean a recession is likely. This Goldman economist has been on the bandwagon for a little while, so these comments are not really new.

More Fed-head speak, as St. Louis President Poole said U.S. fundamentals remain strong. I wouldn't expect him to say otherwise, but the Fed needs to cut far more and quicker than they have been. They are so clueless its painful.

Asian markets closed higher across the board overnight, a good sign. And the Yen is lower today. Oil is higher, back at $97. And the 10-year yield is down to new multi-year lows at 3.80%. Does the Fed think they know more than the bond market?

Earnings season starts tonight, and that means the usual swings around conference calls. More importantly, investors will be listening to hear what CEOs are saying about the current environment and what kind of guidance they are comfortable with.

long GS


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