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Trading Now

Tuesday, October 27, 2009

Stock Market Less Than Stellar

*In case you were wondering, just a few reasons why the markets aren't reaching ever skyward after Case Shillers positive home prices for August, besides the obvious that is:

CPI 47.4 Oct v. 53.4 Sept
27 October 2009 Baltic Dry Index (BDI) -31 3013
Regional Banks are in deep trouble with their commercial loan portfoliods and lack of depositers based on sheer size or lack thereof
Pimco tells investors to start dumping bonds so the dollar slightly gains and when dollar up stocks are inevitably down.

Lesson for the day: If the dollar were strong AND the stock market was going up, then we would be in a bull market. We are so far from it folks. And even if Congress succeeds in extending the housing tax credit to June of 2010, you still need further price declines in almost everything else to dumb down to the levels of consumer spending, which is abysmal.
HINT: why do you think Apple's earnings and profits went through the roof? Because they lowered their prices on just about all of their products. Until Helicopter Ben stops spending my future in the hopes of protecting the present bankers demise, that parachute is going to start tearing, albeit at a much slower pace. Tah Tah.

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