8.29.08

   8.29.08  

            We put out a signal to go to Cash in the Conservative Accounts on Thursday. We also suggested the more Aggressive Investor might want to move to Cash if they didn’t want to assume the additional risk that Gustav brought to the market.  The hurricane is now in the Gulf and looks like it may be a really bad one. It is forcing the closure of oil rigs but so far has had little effect on the price of oil. The Department of Energy has said they will release oil from the Strategic Petroleum Reserves to fill in for the disruption from the hurricane. We hope that the damage is minimal. September is historically the worst month of the year for stocks and Gustav will do nothing to enhance that reputation.

            It is evident that the real economy is functioning better than many reports have recently suggested.  Given the light volume, though, a verdict on the stock market's direction will have to wait until the conventional wisdom of the crowd returns from vacation to supplant the trading inclinations of a smaller group of participants. The big economic report out this week will be Friday when we get the August Jobs Report. . It has the record for most often coming in with a surprise that results in a triple-digit Dow move in one direction or the other. 

            For now we are staying with the current signal and see what’s going to happen in this four day week ahead.

            Until next time

            The MTA Staff