TSG – Of bonds, band-aids, bailouts & billion-dollar bets

Dear Trader,

Of bonds, band-aids, bailouts and billion-dollar bets

TSG Stock Market Letter
Week Ending January 25, 2008

TradeSystemGuru.com
Topics Discussed This Week:

* Band-aid bailout
* Leaders turn up
* Earnings remain weak
* Existing home sales and prices fall
* Of bonds, bailouts and billion dollar bets
… Dear Trader,

Of bonds, band-aids, bailouts and billion-dollar bets

TSG Stock Market Letter
Week Ending January 25, 2008

TradeSystemGuru.com
Topics Discussed This Week:

* Band-aid bailout
* Leaders turn up
* Earnings remain weak
* Existing home sales and prices fall
* Of bonds, bailouts and billion dollar bets
* Short-term stock outlook brightens

More details of the Bush bailout were released this week and another bailout for bonds was hinted at in New York. Not to be left out of the fiscal frivolity, the Fed issued a surprise 75 basis-point rate cut on Tuesday more than a week ahead of the scheduled rate announcement January 30.

But there are two glaring questions about the Bush plan finalized this week with the blessing of the Democrats. 1) Does the government actually believe that the biggest set of bubbles in history will be magically cured by shelling out one-time tax rebates of $600 to individuals, $1200 to couples and cash payments of $300-$600 to the unemployed in June or July at the earliest? 2) What happens the month after the money is gone?

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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 this week’s INTERMARKET letter go to
http://tradesystemguru.com/content/blogcategory/35/69/
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