How Will The Market React….Plus news links

This is being written on Sunday evening. Investors everywhere are still basically waiting and watching. Will the market verdict be Panic Releif, Genuine Optimism, or Outright Rejection.  We will probably have three more days before the votes are completed and a deal is confirmed, a deal that all of Congress hates, and rightly so, the Demorcrats because they hate to be pushed in the corner for somebody else’s problem, and the Republicans because they don’t like the fact that they have to downplay their free-market talk.  But for now this is good as it gets.

There will be a lot more to talk about on this deal as this unfolds and investing strategies are outlined.  For the moment the technicals point to the stock market, the dollar, and bonds as relatively cheap and gold as relatively expensive.  Commodities will reflect their own supply/ demand situation, but inflation is not the issue at the moment. That will change over time.  For now last weeks lows may be tested on bonds and stocks in the next day or two, but the direction is up.  We remain 38 percent long stocks.  And to repeat, the short bond position was closed last Thursday.

10:22 PM CDT

Weekend News at NYT Links

The New York Times yesterday with some very pertinent articles. See links here:

http://www.nytimes.com/2008/09/28/business/28melt.html?ex=1380340800&en=39f686dd31af8cbd&ei=5124&partner=permalink&exprod=permalink

http://www.nytimes.com/2008/09/28/opinion/28friedman.html?ex=1380340800&en=a7aed5037a39e851&ei=5124&partner=permalink&exprod=permalink

http://www.nytimes.com/2008/09/28/opinion/28chernow.html?ex=1380340800&en=4573e63f6259a546&ei=5124&partner=permalink&exprod=permalink

http://www.nytimes.com/2008/09/28/opinion/28wolfe.html?ex=1380340800&en=906a2c950f59bb36&ei=5124&partner=permalink&exprod=permalink

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