CHURNING

Yesterdays move came with a 10% rise in volume, and so with indicators at overbought we may experience at least a short term pullback in price. In a bull market rising volume is normal and usually leads to higher markets.

What is now occuring is within the context of a SUPER BEAR a SECULAR BEAR and it is far from over. Commercial property issues, defaults are on the rise and into 2011 will be putting pressure on banks and the financial sysytem. How many empty stores do you see when you're out?

US Consumer provides 75% of our GDP with spending, and with 8 MILLION newly unemployed since 2007 how can the system produce similar numbers? WHile bank lending, loans are contracting?

I would not be as bearish if I had read reliable data that shows we are headed to a sustaibable recovery. And when you consider the HUGE amounts of money thrown at the economy and banks, and our last weekly cliams was near 500,000 on weekly basis.....that is near the WORST it ever got right after 911 ! almost 3 years into this we can only say it is less worse and cheer?

I see the consumer, I am at ground zero and he is not spending much at all, he is making NO impact on my sales figures or store traffic.

SOme military related companies are hiring, nothing in mortgage and banking, some in insurance. No new car dealerships, broken ground a few miles from store sits empty from 2 years ago.

The inventory rebuild is over, and it is likely GDP falls from here. WILL QE end from the FED? IS there a secandary market again for MBS's? CDO's?

Can the us fund record defifcits above $1 TRILLION each and every year? FUND A WAR? NO CUTS BUT GROW GOV EVEN BIGGER???

Gov is too big, it never grows smaller, always want more power to control. Will the citizens go quietly as the Gov intrudes into your private lives and rights? Scans your skeleton at the airport and strip searches your grandmother or 15 yr old?

If smaller business die, the winners will be the big boys.....forget home flavor....no one wants to go to Joe's Steak House when an OUTBACK is close by, or the wonderful experience you can have at a Red Lobster......

Wait til you hear the speach of how we all have to help each other, bring up the poor by giving more, and taking less. When the more spend and grow businesses (middle class) people get hired! Banks wont lend to small businesses, venture capital firms having trouble getting funding for new startups or keep existing ones going.

AS our need to fund our defificts grow, as we near $14 TRILLION, yes $14 TRILLION....and somehow rates stay low 3.6% 10 yr.......that may not always be the case.

D