Rally needed to save year end sales

Without year-end sales the president elect could fumble the ball

To launch a real rally we need the funds buying to put a squeeze on short-sellers, forcing them to the buy side to close out short-sale positions. That could happen by Monday if Bernacke, Bush, and Hank don't open their mouths too much this weekend. That buying would drive the rally still further dispelling pessimism in time for the holiday season. Unless the news media and the president elect lighten up on their negativism… their dour prognostications will destroy this important retail season which normally accounts for almost 50% of our annual sales.


On seeing higher market prices, the media would then begin pointing out positive news. Institutional money on the sidelines would begin to come in on fear of being left behind for what can be a rally that restores most of what has been lost this year. People would feel more confident and go out shopping again.


If we remember the panic of 1987, the market lost 25% in two days in October. But by the end of that year the market was higher than when it started. Today's market is oversold because the press picked up on the Obama campaign depression talk. Notice that no one but the press still continues to talk that negative talk and when they stop it, the market will rise to compensate for the previous negativism. If president elect Obama really cares about the downtrodden he would not wait until he takes office to show positivism.


FDR showed positivism early and by the time he was in office two months American production had doubled. If the party that won in November does not take action and work together in a non partisan manner to turn the economy around now, then they could be holding a dragon by the tail in January and Americans will see them (they mandated mortgages for unqualified home buyers) as the true cause not the solution to this problem. If this recession is not over in three years (as with the DOT- COM bubble) they will be held responsible. So it is in the interest of the newly elected to start positive thinking for implementing solutions as soon as possible or they will run out of time. Americans are not very patient when presidents fumble the ball.