Comments from Friday

Hey everyone. Been out all weekend and just got back. Saw alot of friends. Fun times. Just had a couple of quick comments on Friday's move.

* The big news of course was the jobs news that came out. What I thought was even more telling going forward was the dollars move The dollar index move was huge. It was not just the Yen but across the board the dollar got crushed. This I think was the result of it now being almost a certainty that a Fed rate cut is now coming. I will repeat the fact that I do not think the Fed can cut like they normally or otherwise would if the dollar was strong. Investors I think are going to be severely disappointed with the Fed cuts over the six months. People forget that IOUs overseas is the same as you or I who owe money on a car or our house with some bank somewhere. They essentially dictate the terms. If all of a sudden we lower interest rates and those terms are not acceptable, down goes the dollar. You control your destiny as long as you don't owe money. Once you owe money you cede some of that control over to someone else. That fact doesn't change just because your a sovereign nation.

* One interesting thing to me is that on Friday and today some of the biggest bright spots was the big investment banks. Morgan Stanley, JP Morgan, Lehman, Goldman were all either not down much or up on Friday and all are up today. They have been following the market or leading it down. Interesting divergence.

* Today the Dow Transport Index is retesting its lows from several weeks ago. It the first meaningful index that is retesting the August lows. Will be worth keeping an eye on for a couple of days.