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Hope and Facts

March 21, 2011 – 5:47 pm

The market opened on a very high note this morning, mostly based on the better but not great news out of Japan where maybe they are avoiding a disaster by restoring power to part of the nuclear plants.

Also, the AT&T deal to buy T-Mobile to reduce from four to three major carriers in the U.S. certainly boosted the already upbeat news out of Japan. The bombing and enforcing a no fly zone over Libya was not the negative issue that most assumed it would be but it certainly caused oil prices to rise again.

There is a major battle between the bulls and bears going on where the bears are relying on international turmoil while the bulls are trying to push the idea that the world economy is still moving forward. I would go with the fundamentals and not the headline news at this time. The Libya issue and Japan disaster will pass. Oil will continue to flow in time and Japan’s people, some of the most productive in the world, will recover. For the short term these two things will hinder world economic activity but by the second half of the year there will be a resurgence from both areas, more so in Japan and less so in Libya.

The people of both countries are suffering, one from a terrible natural disaster and the other from a heartless despot, but it is the people that suffer. For those we hope and pray for and need to support.

Good Trading
Steve Peasley

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