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Wednesday, March 25, 2009

The Market On Wednesday

We are deeper into a wait and see period.

Economic news is still primarily negative with orders for durable goods down again.

When all the specific recession news is out there and the list of government stimulus plans is well established, Wall Street has a way of factoring in the bad news and still moving into rallying type of territory. When this starts occurring in a more even and less volatile way, the edges of a recovery will be in sight. Some feel we are there now, many others differ.

Talking with a long time investor and believer in the stock market yesterday, he said he is prepared to see the DOW go down to 5000. Nothing surprises us at this point, the floors and ceiling have been ripped off.

Reuters: U.S. futures point to higher open
Congress's drive to recoup bonuses at American International Group is slowing significantly as passions on the issue cool, potentially removing a wedge that has threatened to derail the Obama administration's broader agenda, reported the Wall Street Journal.

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