Are we breaking today? We are right at the October lows. It doesn't look like we are going to hold. 850 is very important on the S&P 500 and we finished on top of it. 8000 is the number on the DOW. Hewlet Packard had some decent numbers but it doesn't matter. Not now anyway. Wall St. is in a furver on the plummeting economy and the power vacuum that has been created with President Bush as a lame duck and President Elect Obama not president yet. I would love to see the S&P drop all the way into the 600s. Not sure if we are going to get it but even I would be buying then.
I was shopping this weekend and man, if you can preserve or create wealth, deflation is a marvelous thing. First time I have really been shopping in months and the deals are amazing. It of course means that margins are coming way down, we all knew that anyway, but how far nobody knows. I am thinking about buying a flat screen tv, never owned one, and waiting for the best deal at Circuit City. No way I would go to Best Buy now with Circuit City in bankruptcy and for sure some great deals. This plays out everywhere and all of sudden you have plummeting prices and earnings. Only the strongest are going to survive.