12.14.07
The market started and ended the week on a sour note. There was just no way to make anyone happy this week. The Fed lowered interest rates, but not enough to please the street. Data presented in the Consumer pric was at the root of the market's weakness today as total CPI and core-CPI, which excludes food and energy, were higher than expected for November. Specifically, total CPI rose 0.8% (consensus 0.6%), the biggest increase since September 2005, while core-CPI rose 0.3% (consensus 0.2%), translating to a year-over-year increase of 2.3%.The inflation data fueled concerns that the Fed will be reluctant to cut interest rates much from current levels. There is always something to worry about in the market.
The coming week will see the quad witching of options, which after a down week, usually turns the next week to a profitable one. We also are at that time of year where buying and selling for year end tax positioning is part of the market.
Our current trade is still 50% in and 50% out. For the trade we are down around 10bps. (about 1/10th of 1%.) Our in position is still split between the DOW and the SP500.
Till next time
Don
MTA Staff
