By: Scott Redler
Misery loves company, I guess that’s why it’s in vogue to be a pessimistic bear these days. Today on the ferry I was reading all my newspapers and it’s very easy to get miserable as you read the headlines in the world today. If you read editorials, you would want to convert all of your assets to cash and leave the country.
-Unemployment is at 9.5% (or really 15%+ if you count the discouraged workers)
-25% of households have negative equity
-There is a widening gap between the public and private sector
-The bloated pension system with individuals who think they should retire with six figure pensions (by the way we are voting to bail them out today)
-Our new government policy of wanting to takeover and control the banks, health care and the auto industry
-Tax rates are about to increase once again in 2011
-Droughts and fires in Russia, mudslides in China, and oil strewn throughout the Gulf coast.
It’s sad but it seems all of the above is the new normal.
As far as trading the markets, it take a very steady hand and quick feet to maneuver in this tenuous environment. Today is Fed Day and futures are starting down roughly 10 handles. I do have a feeling that market is expecting miracles from today’s announcement and we will end up getting disappointed.
We need to see if this upper range holds today. Can any stocks/markets go green like we saw Friday or do we get a “composure change”- a day to take notice. 1107-1115 is the important upper support that has to hold for this market to continue on its short term path of rising equities. Watch leaders to see how they handle their upper ranges as well for clues.
