TSG – More Cockroaches in the Machine

Dear Trader,

TSG Stock Market Letter – More cockroaches in the machine

Week Ending January 11, 2008
Topics Discussed This Week:

* Stock struggle continues
* Market leaders have another bad week
* Bad start to new earnings season
* Pending homes sales drop again
* R word evidence mounts but does it really matter?

Stocks surged midweek thanks … Dear Trader,

TSG Stock Market Letter – More cockroaches in the machine

Week Ending January 11, 2008
Topics Discussed This Week:

* Stock struggle continues
* Market leaders have another bad week
* Bad start to new earnings season
* Pending homes sales drop again
* R word evidence mounts but does it really matter?

Stocks surged midweek thanks first to stronger than expected
earnings reports from Aloca and DuPont on Wednesday followed by
more unbridled optimism Thursday on news that Bank of America
would pay another $4 billion to buy beleaguered lender
Countrywide Financial. But was that strength justified
considering that 1) earnings on the first 415 companies
reporting this week are down significantly and 2) the
Countrywide deal has a high probability of turning sour
unless there is a miraculous 2008 turnaround in the housing
market? I put the probability of this happening somewhere
between that of John Edwards calling the White House home
in 2008 and a snowball’s chance on the streets of Vegas at
high-noon.

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To read this week’s STOCK letter please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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To read the INTERMARKET weekly report Monday, go to
http://tradesystemguru.com/content/blogcategory/35/69/
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