Weekly Market update -Dec 8

The markets continued to move up this week, although on light trading volume, which would indicate a weak rally. Of course all eyes are on the Fed next week with the expectation of another rate cut. Sub-prime credit concerns still dog this market though, even with the announcement of a new plan by the President this week to help curb foreclosures.

The US Dollar continued to gain strength this week, helped by Canada and Great Britain dropping their interest rates. Also, we could see Oil continue to drop, maybe down to the $80 level.

Longer term, I continue to see a weak market moving forward.

News stories:
Bush Aims to Prolong Expansion With Subprime Freeze
Paulson Mortgage Plan Surfaces Too Late to Stem Housing Slide
Bank of England Cuts Rates, Says Inflation Will Slow
Canada dollar drops after BoC interest rate cut
Big Fed rate cut may spur a rally
Dark clouds gather on Wall Street