Wednesday, October 03, 2007

Waiting for the Jobs' Report

For a Wednesday, there doesn't seem to be much going on. We are patiently waiting for Friday's read on employment which could prove to be an inflection point for the market. As we have mentioned on more than one occasion, the market seems to have no idea that the economy is actually supposed to be the reason it is alive. With the broader economy still struggling for the most part, the stock market seems content to hope for a rate cut from the Fed. We find this concept difficult to understand but somewhat reasonable considering the Fed's actions in the past couple of months.

The news from the tech sector seemed a little odd on Wednesday, not that we disagree with it, it just didn't correspond with normal trading. When Micron brought out some bad news on Tuesday evening, the market was surprised and hit INTC and AMD along with MU. Fleck talks about MU as being the "flying pig" because it seems to always be putting up bad numbers but always says things have "recently" turned around. Fleck says they turned around "in the last five minutes" so there is nothing to worry about.

Well, on Tuesday evening, they didn't say anything about the "last five minutes" and that bit of "truth" was enough to take the market down ever so slightly on Wednesday morning. But, again, not to worry, the market came back after the early drop and was sporting green for a while. Then a strange thing happened, sellers came in and pushed the indexes down below the early morning lows but a late day rally did bring prices off the lows to close near the lows of the morning. All in all, this was pretty much a nothing day as everyone sort of trades a little to get to Friday.

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