Sunday, September 16, 2007

All Along the Watchtower

Hurry Up and Wait. That is the tone of the market these days. Did anyone notice the friggin rally on Friday? We gap down 100 and trade up 30. You think the shorts are in charge, I beg to differ. Sure volume is not what it was on the down days, but it never is. Price is the leading indicator on the upside. When we get a close over 1500 SPX this week, then the fireworks will begin. Fed shmed, I see 25bps with "easing" language. That should keep the bull market in tact from a psychological view.

Take a look at the consumer staples charts, they are quite strong as they should be. A falling dollar, slowing GDP, pricing power, all good things. Think about it, are you going to stop buying your favorite soft drink for a $.03 increase? I think not. The wife just bought 3-12 packs for $9.99, last year that deal was $8.99. Less than a penny, but multiply that by a billion and it shows on the quarterly earnings.

Oh by the way, did anyone see the Notre Dame offensive line? Cause they were not in Ann Arbor yesterday. Maybe there is somthing left in Lloyd Carr's tank. I'll take a win over Ohio State please.

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