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 Countdown to January 20, 2009Obama's Inauguration day is January 20, 2009, and when the Illinois senator moves into the White House, a flurry of simulative economic programs could be initiated. We may see government investment in new energy systems and rebuilding America's electrical grid (the new national highway system). Renewed vigor, fresh ideas and tangible investment in America could drive an improvement in investor confidence. Additionally, some of America's commitments overseas could subside. The Iraqi cabinet has approved legislation to have all American troops leave the country by 2011. Pulling out and having Iraq become a stable, self-governing nation will remove a major financial burden from our country. |
- Options News: STT, ADM November 6, 2009
- What's Hot: CVS, DPS November 5, 2009
- Sidewinder: CVS, VIA, XL November 5, 2009
- Options News: CTSH November 5, 2009
- Sidewinder: CSCO, SPY, SPLS November 4, 2009
Looking into June, the market should begin refocusing on upcoming earnings reports for evidence the economy is gaining momentum.
Watching the Treasury's Actions
In the short-term, the government's bond auction is likely to be a key driver of stocks.
Treasury Auction Boosts Market
The Treasury's auction of two-year notes brought an upside surprise which should alleviate fears of a lack of demand for U.S. paper.
Credit Markets Point to Upturn
The credit market, a reliable indicator of equity direction, suggests we will break out of the SPX's trading range to the upside.
The market seems to be saying that a 30% move up from the lows is ahead of the real economy and the market needs to allow the economy to catch up.
