Wake Up Call Needed

Why did the market yawn yesterday?  I think what we outlined in yesterdays blog is behind it.  The Tea Party is playing hardball and the Obama Administration is playing softball.  Obama’s speech said the right things but then towards the end he backed Reid’s soft plan.  This will not get anything done.  There has to be the possibility of real consequences if a balanced plan of real revenue increases and program cuts is not enacted.  The shut down of two wars which is the key ingredient of Reid’s plan is a given, that direction is old news and we all have figured in those savings. 

Technical Update:

No change except cattle futures turned long.

 Bottom line, there has to be a real possibility of default if a balanced plan is not agreed to in the next week.