Wednesday, October 6, 2010

Sell On The News

After the less than upbeat ADP employment number this morning, I would not be surprised to see a better than expected payroll report on Friday - not that I would believe the numbers, but just that it may be better than expected. As has often been the case this may very well prove to be a sell on the news event regardless of the number.

All I heard today was that the economy is better than people realize and we are in a slowly rising trend of economic activity. I really don't know what planet these economists appearing in the financial media are living on, but where I live there is nothing happening. It is dead, dead, dead - unless you want to speculate on foreclosures. I don't think the recent rally in the market has anything whatsoever to do with improving fundamentals in the economy, and everything to do with a falling dollar which is now approaching trendline support. A turn up in the dollar will change everyone's perspective very quickly.

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