Wednesday, February 25, 2009

Morning Update/ Market Thread 2/25

Good Morning,

Futures are down this morning with not much in the U.S. news since Obama’s “must spend, spend, spend but we’ll balance our budget because I don’t know math” speech. And we’re all going to go back to college so that we can be a nation of PhD. Wal-Mart greeters and fast food workers.

Here’s an idea… how about we all do one year of remedial math and throw in some lessons on how money works/ doesn’t work? Now that would be worth something.

This morning we learned that mortgage purchase applications are down again:
(EconoDay) Housing demand isn't picking up despite low mortgage rates and falling home prices. MBA's purchase index fell 2.6 percent to a very weak 250.5 in the Feb. 20 week. Refinancing applications also fell, down 19 percent to 3,618.0. Mortgage rates inched higher in the week with 30-year fixed loans averaging 5.07 percent. The purchase index is pointing squarely at weak home sales in February. Data on January's sales of existing home will be released at 10:00 a.m.
Standard & Poor’s cut the rating of Ukraine to that of Pakistan (ccc+). Every time I read about S&P or Moody’s passing judgment on a nation or a company, I am reminded of how poor and broken our rating system is. Any meaningful change must include revamping those companies and eliminating pay for rating.

I’m on the lookout for some type of hammer candlestick today and will get protective if we move above yesterday’s close.

Best of luck to your trades, keep your input and charts coming – appreciate it.

Nate

PS - If you need help seeing where this market is headed, here's a crystal ball for inspiration:

Styx – Crystal Ball: