Wednesday, December 01, 2010

Up and away

Okay, I said there was a little good news but this is getting carried away :)

A little bit of good news out of the UK - their manufacturing sector grew (who knew the UK manufactured anything anymore?) - and the spark was lit today. The market's exploded out of the gate and held firm going into the Federal Reserve's data dump at 12:00 when they revealed who accessed bailout trillions. At 10 minutes to noon Goldman decided they've seen enough to say the US economy has turned the corner and they are now bullish on the economy and that spike the market another 50 points in a minute.

The ADP payroll survey also showed private job growth in November, but this data has been wildly inconsistent lately. We're still expecting a big 150k jobs added in November (again - it will be low end service jobs - restaurants, retail - replacing engineers and IT consultants).

Expect the talking heads to start throwing around "It's a SANTA RALLY!" again soon.

Cheers!

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