Thursday, October 25, 2007

Entry for October 25, 2007 9:55 am

Though the markets may seem hesitant today, it is obvious the Feds feel more bearish as they again added more money into temporary reserves, probably based weaker durable goods reports as reflected in decline in military spending (refer to a couple days ago, i talk about government spending and political repercussions and affects on GDP).

As i had previously talked about volatility in the job markets it interesting was revised up, opposed to down as i thought would happen due to weakness to inflation, but again volatility in part can come from the auto industry and all the UAW problems too.

For other sectors in the economy, credit and sup prime is not affecting them as much as again i would to point out technology as you see this being reflected in M&A activity.

As for industries related to Black and Decker, as earnings were positive, perhaps weakness in housing or construction aspects of real estate are not as weak, though as it is quite possible that much of this growth is more indicative of commercial real estate and growth abroad as Black and Decker is a company that operates globally, and has perspective statements focusing on this.

Apparent weakness in the United States economy can lead to inventory problems for China, as it may be hard to diversify and open new trading opportunities in time as if they do the United States would already be on its way to recovery. Chinas fixed exchange rate will only be hurting themselves in the long run.

By the end of today, I would not be surprised to see another doji formation, bullish or bearish, as conditions are not leading significantly in either direction, perhaps this is a slow move to a more bullish tone that will be set for the coming weeks as long as financials can maintain discipline.

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