Tuesday, September 06, 2011

Sell the open, buy at the close of Europe, Profit!!!

The market continues take the path that seems a little too obvious.  Things look bleak and the market dipped throughout the morning on continued weakness in Europe.  When Europe closes at 11:30am the computers step in and march the market in in an orderly fashion back toward the green (yes, the Dow was down 100 today, but the broader indexes were down just fractionally).  We'll see how long this trend can continue.

The next big catalyst for the markets is likely to be President Obama's Thursday night job speech.  I think the big question is: Will we see something that the President thinks will actually help the economy or is this mere posturing with a proposal that has no chance of passing in Congress?  I don't know what the answer is - I suspect some form of "architect ready" projects (instead of the infamous shovel ready from the 2009 stimulus) to boost infrastructure and some talk of payroll tax cut extensions.  None of these ideas will do much to move the needle in our $15 trillion economy, but perhaps there will be something novel that I haven't thought of.

Cheers!

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