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So much to little time


Ok, here are the major news items of the day:

· North Korea announces that they are removing surveillance gear from Nuclear Power Plants - THAT can't be good.
· No Oil is being pumped and shipped from Venezuela and oil is over $31/barrel - THAT can't be good.
· The Israeli and PLO conflict is back in the news making the Iraq situation even more complicated - THAT can't be good.
· Stocks are mixed on low volume.

Run that last one by me again!

With all the news around, the market continues to trade mixed, which frankly is a little stunning. This is where it is all about perspective. Due to the oversold nature of the market and the potential for a snapback rally, I view the action as constructive because my glass is half full. If the market were in the midst of a size rally like three weeks ago, I would say that many were ignoring the bad news and my glass would be half empty. Again, it goes back to perspective.

That is what happens in the Twilight zone. Basically, all three forces above, North Korea, Venezuela and Iraq are going to have some form of resolution - just not now. That means nothing is imminent, yet the influence is still there. In other words, based on sentiment of street, it is either close enough to be a negative or far enough away to be a positive.

· North Korea at some point is going to have to answer to the International community, but the diplomatic (much less military) solution is going to take time.
· Venezuela is going to pump oil, but there isn't any near-term resolution according to even the best analysts out there (thanks unidentified source).
· Iraq is going to have to comply, but the risk of taking even more oil off the market coupled with new banter coming from Israel and PLO makes an already difficult situation take longer to resolve.

Again, if the tape were going straight up and way overbought, I would argue that their existence was a negative. Since the tape is way oversold and has undergone a significant correction, the lack of imminent action could be construed as less negative and let the tape bounce.

One thing is for sure, this is a very dicey time and each and every person should make sure any decision they make is their own and is a comfortable one given risk tolerance levels and investment goals. My job on isn't to say how to invest or what you should invest in, but is to show how I view the markets and why. Education combined with entertainment - yeaaaaahhhh babbby.
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Difficult environment to have strong conviction in either direction
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