If there is a sharp sell off in stocks - there is a good retort.

[Joe for Clark]

As Dennis Hastert stated today -

Today's record-setting stock market rally is proof that Republican economic policies of tax relief work.

So this could be shortened and restated - The stock market is delivering its verdict on the Republican economic polices - and reference Dennis Hastert as the authority.

I think that would work.

Thanks Dennis!!

Joe

[Sammy Pepys]

1. If the sell off lasts, absolutely....

...if it's just a day here or there, I don't think there's anything you can make of that.

But if you're going to hitch an argument to something like that, you have to be careful. A lot of the talk of the recent market gains has revolved around the market being interested in seeing a Democrat takeover of Congress. If the market suddenly sells off, is that going to mean the market doesn't want a Dem Congress anymore?

[Joe for Clark]

3. Oh I think that is exacly what they are going to say.

I am wondering what we say - and we better say it first and loudest.

I would just point out- this is my opinion - the market is extremely overbought, every attempt to rally above 12000 just kicks in sell programs - and I think most specialist books are short at this point. Most of the public short interest has been blown off - there is not a lot of cushion to the downside here.

And its October. Scary month even under normal circumstances for the market.

Maybe this is the October surprise they have in mind. Hopefully nothing happens, but if it does - the DNC really better be ready. Scream one message loud and clear and first - before they do.

Joe

[Sammy Pepys]

4. I think the market is actually slightly undervalued....

...not by a whole lot. But just a little bit.

[Joe for Clark]

5. Be very careful here.

It is a very strained situation. And if it snaps, it will shred long interests.

And I would be accutely aware - that value doesn't mean too much in a spec move - not in the short run. Fear moves markets. Fear and greed.

So, do be careful.

Joe

[Sammy Pepys]

6. Thanks

I'm very comfortable with my assessment.

[The_Casual_Observer]

2. They go completely silent after a big drop. Didn't here any of this

kind of bullshit last summer.