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The Street is watching the news again.  There was a sharp drop right
after the open.  Through the lunch hour prices held modest gains, but
after that it washed away again to close with modest losses.  Volume
increased to +1%, but that's +21% more than yesterday.

Ben Bernanke, the Fed nominee, spoke today, promising he would promote
jobs and price stability, simultaneously.  Price stability means low
inflation.  I wish him luck, but a significant part of the low inflation
we've had recently, the "conundrum" Greenspan testified about a few
months ago, has been because people with jobs are holding on to them
with both hands.  Job security believed to be a thing of the past, the
belief that jobs are fleeing offshore, and the recession of Bush's first
term have scared workers.  Job jumping for higher wages just isn't
happening, wage inflation has been low and well contained.

How is he going to boost employment?  Sure, a stable, predictable
economy will help, but that's going to require CEO's to have incentives
to keep work at home.  That's not a job monetary policy can do.  Give
that one to the Congresscritters and tax policy.  But it's not easy to
increase job demand at the same rate workers, some long-term unemployed,
are available.  Too much demand leads to wage inflation and price
inflation.  But clearly, we've got a lot of people to put to work and at
better paying jobs.

Still, he's got the right set of priorities.

 Price    Vola-    Momen-   Volume   Oscil-   Summ.
 Change   tility   tum               lator    Index
 -__+     -__+     -__+     -__+     -__+     -__+

 __|_     __>_     __|_     _|__     __|_     __>_     11/09
 __|_     __>_     __|_     __|_     __|_     __>_     11/10
 __>_     __>_     __>_     |___     __|_     __>_     11/11
 _>__     __>_     __>_     _|__     __|_     __>_     11/14
 _|__     __>_     __>_     __|_     ___     11/15

Timing Signals:  I don't use or recommend timing signals, but they're
fun to watch.  If I did though, well, I might use something like this.
(Be warned!!  It tends to whipsaw around signal points!)

Last Signal: BUY        Date:  10/31/05 S&P:    1207
Winner or Loser:  tbd                   By:     tbd

See my market tracking charts for '03-'04 and my investment strategy
study at my website(s):
http://www.xprt.net/~pgrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html




Paul Rogers, paulgrogers{at}yahoo.com                       -o)
http://www.angelfire.com/or/paulrogers                   /\\
Rogers' Second Law: Everything you do communicates.     _\_V

... A hangover is the wrath of grapes.
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