Tuesday, March 31, 2009

Car Wars



Don't ask me where this came from but a simple post title uncovered this gem of a pic. It looks like the market is at the mercy of GM and Chrysler saga for the time being. On Monday we got the expected pull back and profit taking and today we get a pop to the upside with a late day sell off.



Where do we go from here ? well Obama has given these two dud companies 60 days to come up with a better plan then they came up with last week. I would say there better be some big changes in the meantime to how they plan to make us buy cars when most American cars are built so we want a new one every few years cause it's turned into a piece of crap overnight and the warranty has expired to boot.


The Japanese are one up on us and these two have to learn how to compete with quality then the quantity will come. Don't ask me how but they have to figure out a way or the markets could take a nasty hit when everyone is cashing out for summer holidays.


Bottom line is we are coming into earning season again so that will dictate the flow here. One caveat is the Obama plan for bailing out homeowners which I thought would be out by now. If it is a positive plan we could get another short term rally as some stocks like Apple were quick to recover today from yesterdays sell off. Be careful out there and buy quality plays,especially in the juniors.









No comments:

Post a Comment