1/26/11…what’s it to you?

…the SOTU speech that is? Was it the promise of something good that brought the stock market back from the lows yesterday, and has it up slightly overnight? Was it the good feeling of seeing opponents sit next to one another…worthy or otherwise? Was it not seeing one side on its feed while the other side sat dourly and vacuously staring? Perhaps it was the dual GOP responses…the second by the teabaggers chastising the GOP under Bush? TB watch polls and guess what? If you liked it you were a Dem…if not you were GOP…that’s it…nothing to report here! ZIP!

But TB must say the show behind the President was the best. No more Cheshire grinning Nancy Pelosi. Now the show was Biden who was smiling, chuckling, waving to friends…bet he gets a call from Obama today…or will it be the new Chief of Staff Bill Daley?

Boehner on the other hand has the look of a mortician. To his credit he clapped on the first several statements, but then came the divergence, followed by the charitable applause…very light hand clapping accompanied by a bored look…almost cried when Obama mentioned he and Biden coming from the dregs to success (Obama could have added his own story but that wouldn’t have been humble).

So where did Obama lose him? The first one when he was discussing alternative energy and suggested spending on innovation and eliminating the subsidies to oil companies…oops…big supporters of the GOP! The second time when he proposed eliminating the subsidies for student loans to the banks and giving them to those needing them directly…oops other big supporters…even though they are driving millions of Americans into bankruptcy while benefitting at their expense. He briefly brought him back into the fold on healthcare by suggesting modifying malpractice laws to reduce costs…but then…not one more thing brought a rise out of him…stone-faced throughout. But he was a good barometer and we sure needed one since you ‘can’t tell the players without seeing where they are seated.? Speaking of which, the teabaggers seemed to be together…couldn’t be sure…anymore than you could tell just how many Supreme Court justices attended…the court said six would…but it looked like more…by the way on several occasions not all have attended they say.

TB listened on CNN and FOX to the commentaries…all lukewarm…nothing for them to rail at except a few snippets…no real great applause, etc. Of course not you fools…not when your opponents are seated next to you…TB likes that as YOU have to decide what it means, not your party. Note however that nobody yelled ‘liar’ like last year…too dangerous – you could get an elbow in your ribs or worse.

As promised by TB it was a pep rally speech…but a good one…not the kind we have come to expect in the prior eight years by a man who had to look stern and serious to make you know he knew of which he spoke, even if he didn’t.

Now back to the market yesterday which presumably came back merely because of SOTU: the Dow had a slightly higher high and the low was well above Monday’s but it started down and had tow other lower lows before rallying in the final hour…volume was another lite 1.04B shares and spread almost evenly throughout the session. Please explain this: it was down all day yet there were 171 new 52 week highs and just 43 new lows??? Advance declines were about 1.1x positive on the NYSE BUT similarly negative on Nasdaq and Amex. As for breadth, ALL were negative: -1.5x on NYSE, -1.3x on Nasdaq and -2x on Amex…i.e still weak! This time however it was the Dow that was off slightly, while the two Nasdaq indices and the Russell 2000 were barely positive but Transports managed a 0.5% gain. Conclusion: this market is still toppy!

. . . - - - . . .    . . . - - - . . . (S.O.S.)

What did you think of Michele Bachmann’s response? What’s the difference between her and the rest of the GOP? Nothing…no specifics. Well there is one difference…while she jumped on Obama for adding $3 trillion to the deficit last year she blamed Bush…who luckily was out of office before the big hit came…although the bulk of the stimulus was passed on HIS watch, and as critical as TB is of the banks there was simply no alternative…teabaggers take note…and what would Michele have advocated…cutting spending last year? She harped on his increase in unemployment…after all he promised it wouldn’t go above 8%…what control did he have over that…there was a stalemate between the two parties…she even talked about him bloating government…when they have been cutting 10,000 jobs each and every month??? (postal workers mostly as well as the temporary census workers which HE had no control over!

No, TB isn’t letting Obama off the hook…as good as his intentions may be his choice of advisors is pathetic…also he should have returned that $1 million contribution from Goldamn instead of embracing them as he has. It is time to put them and Citi…and now JPMorgan (Daley), not just in the backseat but out of the car…who has the guts to do this? Also, in a poor attempt at damage control he pointed to the 1.1 million jobs ‘created’ last year…that didn’t even make a dent in the new entrants and discouraged workers…but what do you want him to say? Yes, his stimulus has been a failure but it is also largely due to the failure of U.S. companies to hire here…but then why expand production when you can meet the modest increase in demand and if you are a CEO it is only the quarterly and current years bottom line you care about…so much for free market capitalism being built on corporate improvement, it is not.

The GOP rebuttal but Ryan was more fluff…we are the GOP we are here to help you…we all know that mantra…and why he did a good job, certainly better than last years flop by Gov. Jindl…it was meaningless. Remember folks, whatever Obama or Ryan said, it’s all about power. As for Bachmann and the teabaggers…they had better start studying history…they know nothing!

SO TU you…have a great day!

TB

Trader Bill thinks it is clear to anyone reading these missives that they are merely commentaries...as he sees it...and do not necessarily reflect the views of anyone other than his own. Information is gathered from sources he has found reliable, but no guarantees of accuracy are implied. These are merely observations of events in the marketplace offering in an attempt to offer a non-mainstream viewpoint. Copyright TBD Capital LLC, January 26, 2011.

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