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Market Commentary: Clarity and Leadership

February 12, 2009 – 5:45 pm

So much for our new treasury secretary’s rescue package. For the stock market it wasn’t about the package, it was about the stark lack of details. It was a general outline not a plan that was announced. The traders and investors were led to believe that a plan was forthcoming. Since they didn’t get it traders flooded out of the stock market.

This morning cooler heads are peaking above the fray with some cautious buying. Still the market and the country need clarity from our government and so far are not getting it, let alone having any confidence that whatever they do will work.

The key will be housing. The stimulus package working its way through Congress has provisions that look promising but nothing is going to work if interest rates don’t remain low. That might be difficult as fear of inflation, with all this spending on everyone’s mind, is rising.

The market is on a knife edge and will either spring up or fall sharply. Leadership and clarity will make the difference but so far the market is very uncertain of either.

Good Trading
S
teve Peasley

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