Futures are cracked here late night on word that the auto deal is "dead". It's funny cause I think the chances of that really being true are like 1 in 5000. There's no shot they are going to not bail them out, the Republican's are just playing politics and squeezing the UAW. It's a very bad gamble for the UAW because if the auto makers go belly up, all those perks get blasted into nothingness. I doubt the UAW really believes the government will let them die on a vine, or they'd have to make huge concessions. Also after the close BAC said that they are laying off another 30 to 35,000 workers! This is very scary and very tragic. I think that even if OBama does hire 1.5 MIL people for unnecessary jobs we'll still be at 10+% unemployment, places are closing up shop all over faster than we can count them! KB Toys just declared bankruptcy during holiday season! A toy company goes under at this time of year you know things are horrible. California is toast, and bankrupt. Soon NYC will follow, and others. This is really bad and despite shiny happy people wanting to believe things are going to improve in 2009, there are no signs of that anywhere to be found. Once again, HOPE is a four letter word! The S & P is down 37 points right now overnight. I suspect there will be news of a deal and not a deal and a deal, etc. all day Friday. This is the problem overall with this market, its waiting for news to rally, hence why ultimately its doomed. What happens when there's no more good news to be found? Hmmm. Markets that rally only on news are HYPER Bearish.
I will be at Tiny's dads funderal all day today, make sure you use proper money management and do me proud! MAKE SOME Ka-chingos!
Oh, and make sure you all sign up for the - www.worldseriesoftrading.com - week #2 is taking predictions right now! Week #1 winner of $2500 in cash and prizes will be announced over the weekend! Sign up NOW, its FREE, no obligation whatsoever!
Michael "WAXIE" Parness