[jyl]

Well, hope everyone enjoyed that little stock market rally.

CSCO gave atrocious guidance for Jan qtr. Oct retailer reports look to be very bad tommorrow. From 3Q (Sep) reports and data, already knew we were in worst consumer downturn since 1974. But already things are looking worse.

Economy slowed fast in 3Q (Sep) and slowed even more dramatically in Oct. Unless economy quickly rebounds in Nov/Dec - which hardly seems likely - 4Q (Dec) will be ugly. May be headed into worst consumer downturn since WW2, corporate spending is rolling over hard, exports will/are as well.

Europe is speeding downhill. China is rolling over and data suggests a hard landing.

No major govt action on econ stimulus, credit market repair, mortgage refinancing or anything else likely for next 3 months. Current Administration is a total lame duck - the President has effectively left the building.

Quick SPX pop couldn't break through 1,000, hard to call the wiggles but don't see a good reason why don't retest the 10/10 lows - and having a hard time making a good case why shouldn't break them.