Thursday, November 05, 2009

Get ready to pull out your DOW 10,000 hats again!!

The market has reacted surprisingly well to collection of "less bad" news today. Initial claims were slightly lower than expected but the four week moving average is little changed and anything over 500,000 for initial claims is still a bad number in my opinion.

John Chambers at Cisco was his usual overly optimistic self because his sales only fell 19% so obviously we've turned the corner.....

Call me a skeptic on this rally. This has the feeling of someone that wanted to goose the market on no news, so that if we fall hard tomorrow on the jobs report (not likely, as the BLS continues to manage the numbers), we can end the week relatively flat.

If the market likes the jobs number tomorrow, look out. We could be screaming higher for a couple of weeks because the chart readers think this is critical juncture.

Cheers!

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