Markets point up but don't be fooled!

GDP for the 3rd Quarter was announced this morning and not surprisingly it was down -0.3%.This was not as bad as some had predicted with many expecting -0.6%. However, there were 2 good months with Sept. being the bad month. Markets appear to be set to open higher, but that doesn't really make sense does it. So this is a continuation of a Bear market rally. The Fed is lowering Interest rates but it doesn't and won't have any effect because no one is lending credit. So it's like the Butcher shop that advertised hamburger for $0.99/lb and when you ask for it the butcher says we don't have any. :)

Those invested in the stock market right now would be wise to take any profits they have in some stocks as one can predict without much effort these markets will pull back again soon and maybe deeper than before. My advice for those in cash is to use some cash to buy Ultra Short Funds of Indexes like the Dow or S&P500, as they are very cheap right now.

Things are not looking better in the economy even with all the actions of the government to mitigate the financial crisis. Therefore a stock market, which is rising is counter to the real conditions present. save yourself some pain and heed my advice. When might this pullback happen? My guess is just after the election. This rise may be to help give the Republicans a chance to win or keep some seats and so some Hedge Funds and investment bankers are pumping up the Indexes.