INTC AND JPM DELIGHT

Stock futures are soaring and the Dow could open to a triple digit gain and make a new high for the move, possibly challenging the psychological 10K level.

Under this bullish backdrop, it would behard to expect the Transports not to fall in line and rocket much higher as well. And when this happens, it would be in lock step with market especially if it takes out its previous highs.....so we don't have long to find out.

What I am wondering, since INTC has MOST of its business overseas, that the HUGELY WEAK US $ has a LOT to do with its quarter performance.

"Sales fell 8.8% to $9.4 billion, but topped analysts' forecasts of $9 billion."

A lot of inventory rebuilding could be part of the story as well, because MSFT unveils new operating system in OCT, this usally spurs investment in new technology....the assumption is large corporations will have to upgrade to keep up with the enhancements to system.

Now, for the bigger picture, the 50% retrace of the entire decline is now in front of us, SPX 1122 area is one to watch. On the DOW it is 10,360 area.

Capturing these areas should lead to next FIB area of the 61.8% retrace of entire decline.

Needless to say the US $ is again DOWN in trading losing more ground, and this rally built on a dollar debacle continues.

Surely some things are better than before, surely it seems a depression like crisis has been averted, but the credit system is broken and no CDO'S coming into private market, and the GSE'S are the mortgage paper market, with GOV guaranteeing everything....can we break away from the GOV teet?

When will the market have priced in the 100% perfect cheery scenario? WILL the market soon refocus on what is broken? The dire straights of the consumer? The dreery job situation?

A BOND market very crowded and not sending out the same signals as the stock market, usually the bonds will sell off and money flows elsewhere, not this time so far.

What problem still exists in the usually strongest part of our economy is in small business, and they have no access to credit markets.

Markets are reacting to unprescedented levels of reliquification, and not necessarily to underlying strength and improvment....but this AM in an overbought market....comes a pretty good test..will we get a flagpole day that breaks out of Dow 10K and SPX 1100 and holds? WITH INCREASING VOLUME one missing ingredient?

We're soon to find out.

Duratek