Dow is on the way to touch 10,000 mark

10/02/08

Although the Senate has approved the newly revived bailout plan for the financial system, stock traders are not convinced that the plan will be good enough to rescue the US economy. The US economy remains very weak and the crisis of confidence that has frozen the credit markets may not be solved by a plan that focuses on recapitalizing banks and not creating jobs. However, tomorrow we have very important economic number which is Non-farm payroll. The market is looking to fall by more than 100k. This would mark the ninth consecutive month of job losses. I believe that non-farm payrolls could fall as much as 120 to 150k. Now, I guess despite the House of Representative will approve or not, the market will not going anywhere bullishly. We surely are getting close to the most scary part of our economy. Let see how market react on the approval of the House tomorrow mixed with the Non-farm payroll number.