Dec 10, 2007

Dec. 10 - The Pending Home Sales Report released today showing a small bump up helped to buoy the market today. Most market watchers are keeping a close watch on tomorrow Fed meeting, which is expected to cut interest rates at least a quarter point. Trading volume was a little light today ahead of the Fed meeting.

Friday's report with a stronger-than-expected Jobs Report makes me think that the chances of the much-hoped for 1/2 point cut in interest rates much less likely. I expect the Fed to cut on 25 basis points while keeping their language stressing that they are watching indicators closely to ease fears that the Fed isn't responding to recessionary fears fast enough.

The market at the present time, although showing some traction and strength recently, remains unstable. I am being cautious with entering new positions until a little more visibilty on the direction of the macro influences are available.

Notwithstanding this caution, there are several stocks of particular interest that I am watching closely. I will post more this evening on one of the more speculative plays that made a big move today.