One Crazy Week

That was one crazy week! There simply no better way to put it.

On Monday, I made the following comment:

"While I’m certainly not sure this week’s economic data, window dressing, oversold conditions, and Fedspeak will be enough to put in at least a tradeable bottom, we’ve got to start somewhere. I’ve been sitting in cash for a reason, but it isn’t to stay in cash when everyone else now hates the market."

As you know from reading me recently, I have been concerned that I haven’t been doing a good job of putting cash to work. As we saw from the subsequent rally this week, those concerns were justified.

For the week just ended, the Dow gained +3.0%, the S&P 500 +2.8%, the Nasdaq +2.5% and the Russell 2000 +1.7%.

Next week will be all about "how much is the Fed going to cut rates?" and "will that make any substantial difference?" Friday's jobs report is going to be "THE" most important data point we'll see for the remainder of 2007. Also, any additional signs about how consumer spending is this holiday season will have a notable impact.

From my perspective, next week will be even more challenging than this one if you can believe that. With the gains we’ve seen, we are no longer working with extremely low expectations. So, make sure to get plenty of rest this weekend. The next two weeks will ultimately decide how we close out the 2007 and, if you’re like me, you want to close it out right!