Flat Open

GM said their $27 billion debt for equity expire, the union will own about 20% of the new company and bankruptcy is knocking on the door. We have the Case-Shiller home price index at 10am and consumer confidence at the same time.

Oil rose to a six month high to around $63, note that the CRB announced Thursday that speculative buying is getting silly again, the falling dollar has helped the rise as well. All the fundamental players know the price is ahead of itself, but that’s what markets do. I’ve seen the movie before and my shorts are waiting patiently. OPEC meets tomorrow about production so stay tuned.

Hard to believe we are almost half way through 2009 which reminds me to congratulate all the geniuses that CNBC has been dragging out since the new year started, 98% of whom have been calling for a turn in the second half. Although the market has bounced, the economy hasn’t. Just wanted to let them know they have six weeks to be right and revel in their glory, although they could still be wounded from calling a housing bottom in early 2008. The good theater continues. We are near resistance on the indices so it is close to make or break time, be ready either way.

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