US Stocks Move Higher On Lower Volume

Wall Street was eager to hear the news coming from Washington that the US automakers would be bailed out.  Institutional players simply sat out of the market today as volume eased across the board.  The highlight of the session was Small Caps leading the market higher, a positive sign even for a bear market rally.  Ideally, I would have liked volume come in higher than yesterday (Tuesday) but given the lack of direction coming from Washington, I do not blame institutions for sitting on their hands.  I do expect the market to move higher on the hopes of the economy recovering.  However, this will simply be a bull market rally and not a new bull market:  Buyer Beware.

Now California is in serious financial trouble.  What many have yet to realize is social programs even at the state level are bound to fail.  Massive social programs will need to be cut completely leaving many of those dependent on them left in a tailspin.  I would expect riots to ensue and a clash against the wealthy will certainly cause havoc for the Golden State.  Poorer areas of the state will certainly see more tensions, violence/crimes than they have before.

One solution to the problem, rather than have people reliant on the government provide incentives to put these people to work; bring back manufacturing to all parts of this country.  Allow people to take back control of their lives and work for a living!

Again, this market is far from a new bull market but for now we may enjoy a bear market rally.

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