MArket Wrap

Let's get right to it shall we? As the Wall Street hypsters keep bullish, as the letter writers and economists remained undaunted, the underbelly of this economy and market are being exposed.

Market TANKED near the close, yet only 60% down volume, not a panic for sure. Home Builders off their highs from the encouraging home sales AM data we looked at, just a respite IMHO, especially if rates don't decline significantly, median home price gains are now at a snails pace, not such the sellers market it once was. The pooch has been smooched.

I hear 50% of private Pension Funds (NPR Radio) have put at least some of their money in HEDGE FUNDS, because they are unsatisfied with stale or no gains.

Another day of early gains erased, today we went neg to pos back to very neg action.

OIL seems not to want to correct, but it will, but it hasn't. Even if it did drop by even $10, LOTS of damage already done, as the Bush contango in Iraq has now doubled the cost of OIL! And the attacks are getting ever more bold.

NEM reversed to slide under $40 again, why so weak the metals? AN ugly performance of the DURABLE GOODS, and I showed it has been not so hot since mid 2004, it seems to me this wonderful asset inflation, I mean recovery ended over 12 months ago and no one has noticed.

SO much money floating around, Greenspan has TOPPED himself, the royal chump Sir boobsalot.

Federal Reserve has NOTHING to do with American Government, they do as they like, and it defies any logic, no one seems to understand what it is they do and to whom. There is NO free market so all we get is periods of boom and bust cycles.

And as I drive past the new Hummer dealership near me, it looks like huge tanks sitting in the parking lot all getting what 10 MPG?

10 Years ago buddy Bill did near nothing, now Bush to END our dependence on FOREIGN OIL. NO alternative is viable at this time IMHO, all cost prohibitive too.

Toyota leads in hybrids (avg dude can't afford) and they will in fuel cells no doubt, but they might be 10 or more years away! And I wonder if current funding is enough to carry most of these little companies to when it is viable alt. SOme popped a little today PLUG and FCEL a CPST

Energy Bill was OBSOLETE 4 years ago, the one passed only encourages more fossil fuel consumption.

Maybe it is sinking in, high gas and INFLATION is rocking this boat. 80 points on Dow move in 2 hours, will be chump change, try a 200 300 point bombing of exchange if any fear kicks in.

Once the ball gets rolling in one direction, hard to turn it around. And IMHO it is easier now to roll downhill.

Duratek