Premarket indicators show a down market at the open. Today Congress starts the first day of 2 days of hearings with Auto Exec's. Sen. Harry Reid says he doesn't have the votes yet for a bailout package and today will be great theater in those hearings. Some Senators are still talking about a possible bankruptcy needed by one of the auto makers, most likely referring to GM, as a way to warn the other 2 to be very careful about their direction setting and planning for their future. It is not popular to bail out the auto industry and I am sympathetic with that view as I beleive bankruptcy is a prerequisite for bailout. It could be done in a prepackage, as I have written about here and much more accomodation could be gained by doing so from both Exec's and the Unions.
Jobless Claims were down a bit as announced today but tomorrow's Unemployment headline will culminate in setting direction for next week. Job layoffs announced today by AT&T and Dow Chemical adding to the list of companies trimming their workforce and adding to the gloom out there.
I am sticking with my SDS as I still believe the market will go lower and possibly retest the previous lows. I will not do any trading today but tomorrow I will decide where we are headed and write about it here.
Labels: ATT, Congress, Dow Chemical, jobless claims, SDS, Unions
