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"It ain't over, till it's over."  Not often does the FOMC statement
quote Yogi Berra, and if it didn't today, it certainly could have!  The
Street was so sure this was going to be the last interest rate rise.
The Fed's comment disabused them of that misperception, to coin a
phrase.  In plain English it said: we might have to do this again.  You
should make it a point to get a look at the intraday charts--it looks
like the seismogram of the small earthquake that struck Portland this
weekend.  I'll bet you didn't know the Street could whipsaw the market
that fast.  Volume spiked too.  At the close prices closed down 5pts,
where they'd been all day.  Closing volume jumped to +20% above average.

It's almost as though they had a premonition.  Prices dropped about 5pts
at the open and hugged the 1280 line until the announcement.  It's not
unusual for prices to be static before an FOMC announcement, but it is
unusual for them to drop that much right at the open on the day.

There was some other data today, that wage inflation was at the lowest
level in 9 years.  Paradoxically consumer confidence was good--not
because of wages obviously.

There is strategic information there.  How much more evidence do we need
that "The World is Flat" because of globalization?  The comfortable
standard of living we remember from the 50's & 60's, especially the lead
America had on the rest of the world, IS a thing of the past.  Because
of transportation, if the job isn't rooted here, attached to the ground
in one way or another, there's somebody else, somewhere in the world
willing to do it cheaper.  (I always get a chuckle at a local hostlery's
ad campaign that says, "We don't outsource jobs.  We keep them right
here in America."  I'd like to be there when they tell a guest, "I'm
sorry, Mr Smith, we shipped your bed to Bangalore to get the linens
changed.  It'll be back next Thursday.  But FedEx will be delivering
the breakfast you ordered yesterday by 10AM.")

We need to be investigating foreign and international investment
opportunities.
 Price    Vola-    Momen-   Volume   Oscil-   Summ.
 Change   tility   tum               lator    Index
 -__+     -__+     -__+     -__+     -__+     -__+

 _     __|_     ___|     01/25
 __>_     __|_     __|_     ___>     __>_     ___|     01/26
 __>_     ___     __>_     ___|     01/27
 __>_     __     __|_     ___|     01/30
 _>__     _     __|_     ___|     01/31

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:  01/26/06 S&P:    1274
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

... I'm sorry my karma ran over your dogma
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