Friday, February 29, 2008
Market Flashing Signs Slippery Roads Ahead!
Have you ever had a headache that starts then fades a little only to come back worse later in the day? Well the market is doing the same as well. The last day of trading for February showed that many of the economic hang overs left with us from the housing mess are still lingering. Credit and Commerical real estate are next up on the menu. To make matters worse it seems that when Bernanke speaks the market leaks. The Dollar seems to have been given a set of cement shoes and continues it free fall against many other currencies. Looking at the charts that have been completely destroyed seem ready to start picking out burial plots for there next move to the six feet under crowd. Do not get me wrong, I would like to see some market recovery, but it seems that no money is coming in to rescue the market from itself, and feels that recession is not avoidable. Two factors that are giving us clues that downward it the path of choice is Oil is trying to breakout higher and gold the inflation indicator is ticking higher each day. Think any of the items are effecting the everyday consumer? Try one of the following: Fill your gas tank, Buy a gallon of milk, purchase some bread. Any one or all will cost more to do than just a year ago and add that up weekly and see how it impacts your pocket book. The only piece left for this jig saw puzzle is higher unemployment. So if the market is giving you warning signs that slippery roads are ahead, slow down or pull aside and let the storm pass through.