Tuesday, December 16, 2008

Morning Update 12/16

Good Morning,

The DOW futures are up about 90 points this morning, just as the short term stochastic foresaw just prior to yesterday’s close.

Goldman Sachs and the financials are higher after they reported a $2.12 billion dollar loss. That’s nearly $5 per share, and yet Lloyd Blankfein and 6 whole deputies gave up their bonuses this year! OMG, what noble creatures! Of course the times are, “extraordinarily difficult,” so let’s run their stock higher on that news! I know… the street must have been expecting worse, right?

Of course the street must have also been looking for housing starts to fall to the lowest level in history, right? That’s why the market is up? Oh, wait, they were expecting 700,000, but new permits only came in at 616,000! My take? That is actually a good thing, except it’s not low enough! There’s too much inventory, why are we building any houses at all?

Consumer prices FELL by 1.7% by the government’s measurement (which is NOT accurate – at all), and “core” was flat after excluding oil. Hey, if you have a job that’s a good thing, right?

Sorry for all the sarcasm this morning, but reading the media will do that to you. Hey, Best Buy did top estimates, so I guess it must be time to buy stocks again! But wait, bankruptcies are up 30% this year, gee, I wonder why?

Now the media are all reporting that the Fed is printing and that they are likely to cut rates to record levels! No, really? Here’s CNN’s headline:

After rate cuts: The Fed's new ball game

With rate cuts doing little to help boost the economy, the Fed has begun to print money to finance its liquidity programs. But that could spell disaster down the road.

“But could spell disaster down the road.” Ha, ha, good one. Down the road. I have a news flash, you can stop worrying about passing all this onto your grandkids, THE MATH IS NOT GOING TO MAKE IT THAT FAR.

Wave C awaits, we’ll see what they are saying at the bottom of the ‘C’.

Technicals are the same as I discussed in yesterday’s end of day and going into the close updates.

The FOMC decision will be the big item of the day, 2:15 Eastern…

DOW futures are up 80 points and the S&P is up 10.

Have a great day,