CHESSNOID

The market was actually expected to be down sooner or later.  We had 5 good up days in a row and definitely overbought considering the news driving it up was Obama’s cabinet picks.  It is good to have optimism, but the economy has not changed for the better yet.

Just because the news media is reporting that we are in a recession doesn’t make it worse.  We have been living in it for the past year, even if Bush, Bernanke and Paulson have continuously denied we are in one.  The bailouts to them were not obvious signs to them.

NEW YORK (CNNMoney.com)

The NBER is a private group of leading economists charged with dating the start and end of economic downturns. It typically takes a long time after the start of a recession to declare its start because of the need to look at final readings of various economic measures.

“The committee views the payroll employment measure, which is based on a large survey of employers, as the most reliable comprehensive estimate of employment,” said the group’s statement. “This series reached a peak in December 2007 and has declined every month since then.”

As far as the markets dipping today, investors have been looking for a reason to unload and lock in any profits they have made in the last week. December is also the month institutional investors start reshaping their portfolios for tax purposes. I am starting to think if this month does remain at this level, then we might actually have a New Years’ rally in hopes that the new Obama administration may get us back on the right track.