Economy on the Ropes
The Bear Market Trap rally continues on Wall Street despite ever-increasing bad data on all fronts. It leaves one to wonder why would stocks rally when we have, the lowest aggregate commodity prices since the Great Depression, the highest real unemployment claim filings ever every week, the lowest retail sales since records were kept, the lowest retail profit margins since records were kept and the lowest Treasury Interest Rate in history. It is a classic bear trap rally to sucker the average investor back into the market while the hedge fund managers play with spreads clipping small percentages on each trade to try to boost the value of their funds before the year ends. The next set of numbers will come out right after the new year turns and the market will turn with the year. Expect a steady erosion of the market indices throughout January right into the inauguration. If the Obama Administration can really hit the ground running with an immediate realistic stimulus package as they...