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Is This Really Just a 'Junk' Rally?

When it is a GDP contraction of 6.1% is good news for stock market? As noted earlier it is a sucker rally. A little uptick in consumer spending cannot be interpreted as sustainable improvement in consumer's financial situation. The consumer fundamentals are:

1) Average debt still high
2) Average asset way down (stocks,home price)
3) Increasing unemployment rate
4) Looming inflation
5) Aging baby boomers no time left to save

At best market is having selective hearing and totally missing the broad negative undercurrent. GM is pretty much dead. How can a company run by UAW and federal government be competitive? Over and above Fannie and Freddie, now AIG and Citi are practically GSE’s. US taxpayers can’t even get any tax write-off ‘s for the trillions of TARP and TALF losses. The depletion of inventory does not mean that there will be new capital investment.

From where I sit the DOW range till 2010 will be 7,000-8,000. Over 8,000 sell, under 7,000 buy.