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Upbeat Everywhere- Almost

January 21, 2011 – 5:59 pm

As earnings numbers roll in and continue to be impressive the market took a couple days off this week from its upward run. This morning it started off returning to its bullish ways as GE reported blow out earnings and gave an upbeat outlook for the rest of 2011.

Google was in the news as they made some changes in their front office and Bank of America reported weak numbers. However, it appears news coming out of Europe was upbeat as the struggling countries continue to be bailed out by the stronger and this positive sentiment pushed the futures up higher here in the U.S. I am not sure that the Euro problem is behind us but it is fading from the front page.

China has also pushed its way to the front of everyone’s mind. They have been trying to slow down their economy attempting to get a handle on inflation that is running at much higher levels than they have targeted. It’s not runaway inflation but high enough to cause some concern. The same thing is happening in India. The rate is about 5% in both countries. To slow their economy they both have been tightening the money supply and that means less economic activity. You can see why stock markets fear that outcome. Slower economies means less earnings and of course that pushes down stock prices.

The news is mixed but generally positive and stock and prices remain in an upward trend.

Good Trading
Steve Peasley

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