CHESSNOID

Tomorrow the federal reserve will make an announcement of how much they will shave the interest rate down. I expect any amount will cause the stock markets to bounce up in the short term. Earnings are still coming out. Yahoo just made its earnings announcement and layoffs of up to 1,000 are to follow. The stock was down 10% after hours trading. I am not sure how much this will affect the market since most people seem to be aware of this news before it became official.

We are still getting more bad financial news from Countrywide and American Express, but the market didn’t seem to mind or react. The thinking is the worse the results, the more likely the federal reserve is to lower rates and continue to do so. It is possible interest rates will be down to 3% by the end of tomorrow. I don’t think the overseas markets appreciate this since we affect their currency value indirectly by these moves.

We are still in a downtrend in stock movements based on technicals, but the US stock market averages are closing up. I would be careful in buying long in this market. I am still in cash and may miss this short term run up. I do appreciate missing the 15% -20% drop I would have experienced if I didn’t lock in my profits. Again, I am trying to wait out the market.

On one of the real estate blogs I read, they had a link to foreclosures for sale here in Orange County, California. Look like some great deals available, but I missed all the open houses they had earlier to check them out. The list here is pretty good and I tried to find them on Redfin and Zillow but had no luck in locating them. I don’t know how many buyers will be there, but if any of these sell for opening bids, the buyers will get slamming deals.

The stock markets today closed up on a positive note. I think we will have a bounce tomorrow before we resume a downward trend from the effects of the secret recession on our economy.