Still Knocking On Heaven's Door...

The road to Heaven is usually the easy part... it's always the doorway that's daunting. Here we have the Dow still at the doorway this week and displaying no signs of the explosive energy needed to get beyond the 14000 point. In fact, the Dow continues to be short term overbought by the end of last week, further reducing the possibilities of any explosive breakouts. Many analysts are now speculating for another rate cut this month before the Dow could make a new high. Well, I would say that with the rash of economic data pointing more towards a recession rather than inflation, another quarter point cut may indeed be on our way. In fact, the Fed Fund Index has already priced in an 80% possibility of a quarter point cut at this point of time. The week ahead continues to be daunting and a slight pullback should not be surprising.