Stock Market Psychology

Basically, a waiting game continues. The global market crash over
Sept. /Oct. ' 08 was the direct reflection of a plunge in global output
and profits. In the US, the leading economic data sets I follow have
leveled off over the past 2 months, and the SP 500 has notched 70%
of its daily closes between 800 - 900 since mid - Oct. ' 08.

The market has faded since year end primarily because operating
profits have come in well below expectations. In turn, players now
know the Obama stimulus package will phase in rather slowly.
Players have also re-discovered that settling the toxic debt issue
of the banks is going to have require some creative thought not now
in evidence.

We have G-7 this weekend, but beyond that the focus should be on
another round of poor earnings reports coming in April and whether
prospective additional economic rescue steps by the Obama admin.
and others in the interim might be enough to hold the markets up.