Iran is just trying to cause more drama by sending war ships into the Suez Canal. I guess sending a bomb that way wouldn’t be productive but it would send a message. It seems as though the bulls still reign sovereign over the stock market. Inflation seems to not concern anyone in the Federal Reserve but consumers are the ones that will feel the pinch. Jeans and T-shirts will supposedly rise 20% as well as most clothing apparel made from cotton. I think the 40% ownership sold of the NYSE is a horrible move because it seems as though America will be run by everyone else but America.  I am all for free enterprise and capitalism but certain symbols should stay here. Considering it is at a discount when bought by euros. What do you think?

The market seems resilient even after protests became violent today. The S&P and DOW are still at support levels and have dug their heals in. There is a concern that bad winter weather and the cyclone in Australia could be hurt the supply of sugar and other commodities. Many mines have been closed due to the category 5 cyclone. Job data will be released Friday which could hopefully give us a real direction. Choppy trading is all about timing but a real bull or bear market is what we are looking for.

The euro seems to be heading toward $1.40 which might be feasible. Could it sustain that level? I believe the issues overseas are systemic as job growth slows and debt issues worsen. If it hits that level be ready to short it. The S&P seems to be resilient even though job data is negative and earnings are so-so. The fact that it has reached 1300.00 area with no economic data to talk about is also concerning. These levels could be sustained due government intervention and corporate stock buyback programs. Is the consumer jumping in to these markets? The consumer is optimistic but they are watching spending and most likely not buying into the market, unless it is in their 401k. The technical levels that have been reached should be a warning that a sell-off of 10%-12% is possible.

Goldman Sachs seems to be allowed to handle accounting procedures as they see fit. Apparently they had $5 billion in losses that they conveniently moved in a different area of the accounting books. Because they have a name that people are in awe of and the fact that they have billions to burn it is easy for them to pay fines. The own up to shotty procedures or law, pay the fine, and move on. When will full disclosure be mandatory? Maybe they think they are a hedge fund and the rules do not apply.

It could be possible that the job report tomorrow could be better than expectations. This could bring the market to new highs and also affect the currency market tomorrow. Remember jobs need to be above 430k to sustain growth and of course help with confidence. Tomorrow is a day that one should be glued the TV and wait for trade recommendations.

Just because Wall St. is doing better does not mean the consumer is doing better. Is the average person reinventing themselves? I would have to say that most are not thinking outside the box and looking for jobs out of their skill set. Or some are not taking lower pay and working menial jobs to make ends meet. Why give more breaks? I thought this was survival of the fittest. This may sound harsh but it is reality. If you are a homebuilder and you went bust are you trying another industry or trying to make it happen? If you are a stockbroker are you still trying to be in the game. Sometimes the best thing to do when bad things happens is to find a job you will really love to do. If your not going to get the money you once made you might as well be happy. Who knows maybe the new job will create an even larger income down the road.

I wanted to continue this conversation from my morning commentary. There seems to be concern over the retirement age and if it will be raised to 69-70. Some may be waiting to see what it will before putting in for retirement. Here is the thing! The market has changed dramatically and ones retirement funds may still be down. If you can make more staying home wouldn’t you just stay home?  Reassess your income to debt and downsize so that you actually can save money while living the same type of life style. I am not sure about you but I am the person that decided when I retire not someone else. If you can do it on your own terms now then I suggest doing it; especially if it makes economic sense.

The government is planning to tax you more to go to work if you make over $250,000 per married couple. In the past one would look at retirement in the sense of how long does one think they will live? In the future people may live longer and may have to work longer hours or longer amount of time. Talk about lazy! Working harder makes you more income but why work harder if you’re just going to get taxed more. This is great motivational tactic Obama! Your teaching our youth to be lazier then they already are.

Some may be thinking that selling occurs at year end and this is likely. The volume may be due to this and or because of the debt issues overseas. Portugal and Italy might be in the spot-light a little more starting 2011.There might be a bounce in the market from Chicago PMI and Consumer Confidence today. Expectations show an increase in both but nothing is set in stone.

Core producer prices fell for the month of October which was one of the biggest drops in over 4 years. PPI was expected to rise 0.8% but only rose 0.4% last month. This might not be good news for the dollar and could be a sign that inflation is presenting itself. Our countries debt is growing, individual states are doing their best to raise money by issuing more debt, and the cost of goods is rising. Does the stock market really deserve to be on the upward move? Monetary policies and spending have to be strategically placed. By throwing money at our countries issues we might be causing new bubbles. Only time can tell!

The U.S. Dollar is now at bigger risk of crashing than ever before! We cannot artificially help the entire market and there could be consequences for government intervention. Bubbles can form in places that are not being examined but the biggest one is the dollar. Inflation is a real possibility and rates should be adjusted at this time rather than waiting for direct signs. Not everything is cut and dry and not everything works as it did in the past. Over the years indicators would flash and data would warn the Fed. What if that system does not work anymore?