Wednesday January 16th Market Update

The CPI numbers are showing that inflation continues to be a problem. With the PPI and CPI data we've seen, I don't know how the Fed will be able to deliver the rate cuts that everyone is expecting. This is turning into a pretty nasty situation. I think Bernanke's speech last week was a huge mistake. We now have a scenario of huge rate cut "expectations", which is a no win situation. We saw some pretty serious damage this morning in many of the nasdaq 100 names. These lows will need to be retested. Be careful with the high PE names (ie. BIDU, FSLR, ISRG) - the froth is at risk.