Dec 3

Today is all about one thing….DATA. We are getting the Fed’s Beige Book, ISM Services, Productivity-Rev and ADP Employment. The Fed’s Beige Book can move the market. It only comes out 8 times a year. It’s a report where each of the 12 Federal Reserve Banks gather anecdotal information on current economic conditions in their district interviewing key business contacts, economists, market experts and other sources. The ADP Employment report will be our first look at job loss in November. The market doesn’t get too excited about ADP because historically it will be off the all important Nonfarm payrolls numbers coming out Friday. However, a number higher than -200K will not be good for the market. Productivity-Rev and ADP come out before the opening bell, ISM Services is at 9am and the important Fed’s Beige Book is out at 1pm.

It is really hard for me to predict what the market will do without knowing the data, but that will not stop me. I think the data will be a train wreck and we will give back all the gains from yesterday and more. All the market needs is a small reason to sell/short. If we are near 820 on the S&P 500 around the announcement of the Beige Book (providing it is as bad as I think) we will push right through that resistance level and go to 800 fast. Let’s see what the data gives us.

Ok…now my rant about the bankrupt 3. They are all a disgrace to the title CEO but I want to rant about Rick Wanker. What planet is this guy on? He is saying that GM needs $4 billion today to make it to the end of the year. This didn’t just happen this year. These guys have been falling apart for a long time. I like to look at debt to see how bad a company is. GM owes creditors $45 billion. Now Wanker wants to swap their bond holders to worthless equity paper. How are they going to pay back the $45 billion plus the new $18 billion they are asking for right now? They will go bankrupt. Electric cars are not going to save them. We don’t have enough electricity output right now to handle electric cars. CA and other states already have brownouts. Plus 50% of electricity comes from coal. How green is that? Let’s not forget that tax on gas pays for our roads. Why don’t they just bring their Natural Gas cars into the US and stop this electric car crap. Ok…I’m done.