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Market Commentary: Uncertainty

November 18, 2008 – 1:52 pm

  Industrial production increased 1.3% in October after falling a revised 3.7% in September, which was one of the largest declines in the last 50 years. Though production rebounded more than expected in October it was still a very weak number. Also, capacity utilization increased to 76.4% from 75.5% in September. 

These are low numbers but better than most expected. Auto was particularly weak whereas there was a rebound in Boeing. That was caused by the strike ending.

Also, oil and gas production rose because of the hurricane that shut the gulf coast down a couple months ago. High tech production was down .9% month over month though it is up 9.9% year over year.  

How weak will our economy become? That is where the market is focusing its attention. Traders and investors have already built into the prices of stocks a very weak economy looking forward. They are now looking for evidence of any significant change in their already poor assessment of the future. That is why we continue to see huge volatility. 

Good Trading
Steve Peasley 

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