Obama's Inauguration

The new US President will be inaugurated tomorrow, ushering in the Obama era (see economic calendar). From what he has done so far, the Obama era is going to be one of economic building and social improvement. No doubt, Mr Obama is going to go down in history as the President that took the US (and the world?) out of the 2008 market crash. In fact, he has already started on it before inauguration by releasing the balance of the stimulus package (that was never meant to be released?). Whether or not it is a correct thing to do in the economic sense is a topic for economists but what it does is clearly signal a change in political direction... indeed, fulfilling his tagline of "Change you can believe in". Lets look forward to its effects on the stock market.

The Dow took a slight pull up last week and with the balance of economic stimulus package being approved for release, we could certainly look forward to a follow up on this pull up tomorrow. In fact, the Dow is also turning around from a short term oversold condition, which could reduce last week's short term bearish breakout into nothing more than a bear trap.