Coming Up On Wall Street - Maybe...

The market is treading water against a current that is pulling it downstream. The current is getting stronger. Economic data has been poor while corporate returns have been positive.

I read the other day where the era of the McMansion is over. That type of housing is still being built and purchased, and the supply of such houses is vast. I am seeing plenty of articles on the wealthy, on huge houses and estates, notions and strategies for that high six figure job, million dollar cars, its very perverse as most are under pressure to quiet consumerism like it or not. The belt is tightening.

Mergers and acquisitions are on investors minds. However, when there is a merger more people are laid off in an attempt to streamline and improve profitability.

If I were a betting man, I would put money on the DOW, S&P, and NASDAQ overall losing some but not hundreds of points during the coming week with a day or two of relief mixed in.

Reuters: Investors defensive with data in spotlight

"The main goal of a merger is to cut costs which means they are going to be cutting jobs even more -- so is that necessarily a good thing?"


Disappointing initial jobless claims data and a dismal reading on manufacturing activity in the mid-Atlantic region on Thursday have turned investors pessimistic, as the chorus warning of a double-dip recession grows louder.


"The big speculation for next week is who is next on the M&A front. That's going to be the big story and information everyone wants to know..."


The CBOE Volatility index .VIX, Wall Street's so-called fear gauge, was expected to stay below 25, suggesting a relatively calm market.