Monday, March 21, 2011

Market comments for March 21st and the week

It was not surprising this morning that the market is up. The Dow is up 165 in early trading to 12,027 and the S&P 500 is up to 1295, all because of 2 things. First the success with the No-Fly Zone in Libya and secondly because of the fact Friday was Options expiration lat week. Let's face it the news isn't that good with Oil this morning up another $2.00/barrel. Many expect this trouble in Libya to end badly for Libyans. Don't forget we are dealing with a mad man in Gadhafi. And as they say the acorn doesn't fall far from the tree and he does have several sons, who are by his side in all of this mess.

Expect this week that we will form a lower low than we did last week at the Dow will make a try at going below 11,400. We have had 3 strong rallies the past 3 trading days and I think that string of moves is about finished.

Last week I purchased the Agricultural ETF, symbol DBA for $32.60, as I see agricultural commodities rising with oil prices surging on Middle East concerns as well as of Japan's nuclear reactor concerns and recovery from the Tsunami and earthquake. I expect DBA to go to $36 in the short term because of these problems.

And on the political front, the Republicans are not dealing with the debt issues except in very small ways. So the mountain of debt we have is still rising with this republican Congress and this unwilling President who has his eyes only on 2012 and not making any mistakes. He has been absent on this issue for fear of angering constituents. But that's not leading at all, I'm sorry to say!

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