Monday, December 24, 2007

Big Rally Day

This was some kind of big rally day. Dow was up 99 but advance/decliners were up almost 3-1 (sort of medium for a rally day). I guess sellers were away holiday shopping, buyers were the only ones around. The MLP index (Master Limited Partnerships) was up 5 (up more than 8 in two days). REIT's were up nicely. Even junk bond funds were up, maybe tax loss selling is finished for them. But this was a holiday shortened day, volume was not heavy. The rest of the week will be up if the sellers remain away. However, fundamental problems remain in the US economy.

I sense retailers are pressing hard for sales. Good for shoppers, not for them. They are giving many discounts which will probably continue. Sales should be up with margins down making for not so good results. Housing remains in the dumps and credit crunch is not over. If this proves to be an up week, enjoy. We all need them.

Happy Holidays to ALL!!

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