PINS AND NEEDLES

The market sits on pins and needles as well it should considering the surge the market got at the release of the last Fed minutes. My instincts tell me they will try it again. It is a perfect opportunity to squeeze the shorts as we are not far from the highs and a move above would run the stops. This time around I don't think it will be longlived. The fundamental background is quite different. Oil is near its highs. Real estate the locomotive of the economy the past few years is softening. Auto sales due out tomorrow, which bounced back in December but were blamed for the poor showing of GDP, are expected to show weakness. Finally, their is considerable doubt aver the strength of the consumer this year. Earnings, with the exception of Exxon, have also not blown anyone away particularly among the dow stocks. Greenspan the market's security blanket is also gone. Time to sell the rallies I think.