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06 November 2008

Stock Market Reveiw

The stock market in this election week has seen some volatile trading. This really isn't much different than we've been seeing the past month, except I really expected the market to see an Obama rally. It turned out to be a buy the rumor sell the fact type of market.

Leading up to election day everyone expected Obama to win and the market rallied in a big way. Then after the election the market tanked again. Wednesday seemed to try and hold on to its gains and move higher but there was too much resistance at the top and by afternoon the market began selling off. Thursday the market didn't waste any time heading lower, in fact in overnight trading the market was down big as well.

The markets seem to be focusing on the economy and jobs reports, which as we all know are not looking good. The holiday shopping season will become an area of focus in the coming couple of months. Shoppers are expected to spend less; some companies are already going out of business, which usually doesn't happen till after the holidays. Many marginal businesses will probably fail if shoppers cut back.

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