Monday, March 12, 2007


Pending bankruptcy and halting of New Century Financials stock gave the market early jitters.

A slew of mergers and acquisitions gave the market hope which the bulls were able to ride through the middle all the way to market close.

Is KKR telling us something by their acquisition of Dollar General ? Telling us that they expect worsening economic conditions that will force all of us to shop at dollar stores.

Asset managers were the biggest winners today while builders were the biggest losers.

All indices were strongly in the green. But volume was exceptionally light. Just take a look at the Qs . Lightest volume in 15 trading sessions.

Light volume is an indication traders are on the sidelines awaiting key economic data such as retail sales and business inventories being released tomorrow.

I expect tomorrow to see heavier trading volume. As to which side the market will lean, I do not have a clue. If retail sales are weak, the market could drop as fears increase over a possible recession or atleast, a bigger than anticipated slowdown. On the other hand we could rally strongly because, traders believe a rate cut will be imminent.

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