THE NEXT SHOE TO DROP

I made reference to potential problems with the smaller banks in an earlier post and if you have been watching earnings this morning you are seeing them miss estimates. If we don't see the economy improve in the next few months--this will be the next shoe to drop. There is still time but the clock is ticking on these smaller banks.

On a positive note we saw Apple beat estimates and it is up about 9% in the premarket. IBM did the same and I still like IBM going forward---even though I got negative email about my mention of them about a week ago. What will happen with GE? Will they cut their dividend or will they risk having their credit rating reduced? Neither will be positive for the stock. If we don't get a follow through on yessterday's rally, I think we could test 7000 in the next few weeks. The more likely scenario is a rally up to the top of this trading range as we vascillate in that range.

We will have more later and a great interview posted late tonight. Our interview with Scott Bleier will be posted tonight and our interview with Walter John Williams was postponed until Friday night and will be posted either late Friday or early Saturday.