This week should show where the market intends to go. Housing data was so-so and job reports on Friday could be a huge factor. Consumer confidence did come in higher than expected which has many economists scratching their heads. The fact is growth in GDP cannot be obtained at the current level of unemployment. The argument today is should the housing market be left alone to fail? My answer is no because the foreclosure rate will skyrocket as more job are lost. The problem is some economists have not lived on the other side of the tracks in years. What we need is for people to get their head out of the books for a second and join the rest of the world. We are still in a recession guys!!!!!

This week it is apparent we are seeing traders test the market. There is support around the 1050.00 level on the S&P. Foreclosures and employment are still on the minds of consumers. Are we looking at a double dip recession? Or did we just not get out of the first one? Sometimes statistics are incorrect and maybe GDP needs a new equation or maybe other indicators should be used. The next few months might be defensive buying so do not be fooled into believing there is a bull market. Consumers are scared and more retail outlets will be going out of business.

Let’s break this down real quick! GM is going to create an IPO and consumers can only be involved if they are a hedge fund. Basically rich investors or hedge funds that give large commissions to brokers will be allowed to get this IPO before it comes to market. Now, this is normal but didn’t we the consumer bail out GM? Didn’t we give them oxygen when the government bailed them out? Throw investors a bone once in a while; especially after tax dollars were used for the financial bailout. The government needs to do the right thing here and people should be lobbying or being aggressive about this. In all seriousness the government is part owner of GM! They need to speak up. Any thoughts?

Unemployment numbers were negative and retail sales were basically flat. Why does everyone seems surprised by this? The market does not shoot straight up because we are out of a recession. There are adjustments being made by the government, by companies, and most importantly by the consumer. Consumers are weary of the market but do not seem fearful. Supposedly there is 5-6 trillion dollars of consumer money on the sidelines. There is no panic selling but there is no ambitious buying either. The S&P is backing off a little but could still jump to 1145.00 levels. This is simply a technical level without any economic data or news as variables. Technology could be how this market moves forward as banking is expected to slump over the next few quarters.

There is a whole mess of stuff going on out there! Oil is still being spilled out in the Gulf, the Yuan will start to move helping trade, BNP Paribus has been downgraded, and the housing market is down. Please do not forget that jobs are still rare to find and that many cannot afford their mortgages. This trader mentioned a double dip recession months ago and many said it was impossible. Now these geniuses are saying it is a possibility but is unlikely. Are you kidding stick with your comments! I am tired of double talk. You are either right or wrong. There is no in between when it comes to the markets. Once Congress sets the new reform for Wall Street we could see a large amount of sellers come out of the woodworks. Do not get sucked into this market as traders are testing the waters with play money.

Money supply is up which is good news for the markets. However the market is trading sideways as unemployment and cost cutting techniques both remain to be issues. The market may have a little more upside but I do not believe job s will start reappearing anytime soon. Also, other countries may start going bankrupt which could create fear. Where the jobs Obama?

The Yen could break out over the next few days and is currently trading at 1.13. The stock market wants to make a bullish move but is still worried about jobs and factory orders. My idea to take lottery winnings and create more slot machines at airports could really help the American people. Where else can we get significant amounts of money without taxing the consumer. Tax the rich! Well, in all honesty that’s stupid because they are the only people buying stuff. It is scary how much revenue is created after the government taxes lottery winnings. I think this should be investigated further. We can pay healthcare bills for the entire U.S if we make a big lottery donation.

Consumer confidence numbers were expected to be around 55-56 and came in at 46. Let’s talk real for a minute. The big banks, hedge funds, and traders do push their weigh around in the market and can set markets up or down. However, we the people the consumers run the show. If people are not spending money the market should sell off. These swings could go on for a few years which can even effect the technology sector of the market. This sector in my estimation is overbought and could sell off in the near future. Google and Apple are doing well but what about everyone else? The amount of money many companies spend on research and development may have to be cut back if consumers limit spending habits.

 Its scary how the Fed can be profitable yet they can’t find jobs for a couple million people. I believe it’s their American duty to create jobs no matter what the situation is. Those that are out of work should be able to put their resume in to see if they have the education requirements to maintain a government or state regulated job. I know Wall Street guys that are bar tending and computer technicians that are cleaning floors to put money on the table. But what about those that cannot find a job doing anything currently? Right now a job is a job and providing for their families is number one. We have a small trading range of 1136 - 1147 on the S&P.

Unemployment numbers seem to be moving down but seem to be far away from positive territory. The government is trying to help industries grow in order to help consumers land jobs. This may take time but the market seems to be rising on hopes. Is hope enough even though the numbers don’t show? Manufacturing data and other growing areas have shown obvious signs of a recovery. A supposed double dip recession is possible but has never happened. Outside influences could hinder the markets such as terrorist activity. If these extremist idiots do another 9/11 incident we could see a huge pullback in the market. Do not think for a minute we are out of the woods yet. We are vulnerable because of the past recession and uneasiness by consumers to jump back in the market. Wall Street is doing fine but what about the people on Main street!