Tuesday, April 7, 2009

Economic update

Copper, called "Dr. Copper" because of it's ability to give a tell to the economic growth, rose 1.6% overnight and was briefly over $2.  Also, George Soros has taken a complete economic collapse out of the picture.

But today is still about the beginning of earnings season and perennial disappointer Alcoa (AA) is due out after the bell.  The pessimism around AA's number and guidance is so thick that I cannot see this damaging the market too much barring an announcement of bankruptcy.

We still need financial stocks to lead and with the 50% run in the past 3 weeks, the XLF is due to tread water for a while.  Even a 38% retracement would not be a bad thing.  

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