BOO!

Well when the wife notices that the blog hasn't been updated and mentions it, I guess it's time to do an update. She already nags me enough about everything else.

:-)

So, last update I mentioned that we'd hit 10,000 and would we stay or just drop right back. We held for about a week and then we're in the midst of a pullback. Down about 6%. A real pullback or just another rest period before another move up???

Here's what's going to happen, bank on it. OK, well don't bank on it, but watch for it. S&P is at 1040 right now. We'll dip down to 1025 Monday, maybe into Tuesday morning, then a move to the 1070 range over the next few trading days. Then we're done. Finished. Kaput. The real move down hits.

GDP for Q3 came out and was a surprise to the upside. The markets rallied 200 points. ONLY 200 points. The reality is that while the GDP number appeared to be good, as soon as you dug into it and realized almost half of the "goodness" was due to cash for clunkers and that's dead and gone now.

The gov't has been trying to buy time until the real economy comes back to life. Problem is it's taking longer than they'd hoped.

Watch the headlines for the CIT bankruptcy. That will have major ripple effects out there.

How was this honey? Let me know when I need to do another post.

Took Long Enough

FINALLY! We saw the Dow touch 10,000 today. Now what? We'll see. I've had 10,000 as the goal. Now will we hold above it for a time in order to get everyone sucked back in that's been holding back? Or will we simply say "thanks... see ya" as we head back down.

Third quarter earnings are off to a good start and some more of the big boys report the rest of the week. Still a lot of smoke and mirrors going on. Q2 was all about cost cutting and Q3 is all about the weak dollar which helps multi-national companies.

The big question is, are consumers really spending again? What do you think? I don't see it, but what do I know. Seems to me that everyone is scared to death of losing their job so they're paying down debt and hoarding cash. With the real unemployment percentage hovering around 20% it's very ugly out there.

See what the rest of October has in store for us.