Market waiting for new catalyst (6/5/09)

Today's market was a lackluster with no exciting news. Unemployment is slowing down, let's hope that companies have cut enough jobs to see the bottom. Oil briefly touched $70 today. So many ppl were screaming high inflation is coming. I was like laughing at their ignorance. Almost 10% of the workforce is on unemployment benefit, where does the money come from to make inflation happen? We are still trying to stabilize the economy! Granted, FED has been printing money, but its purpose is to stop deflation and stimulate demand, which it's working. I can guarantee you that once US economy is in recovery, FED will raise interest rate (main reason is to keep US dollar's strength). Then high inflation won't even happen. The rise in commodity is a good thing because it means we are officially out of deflation. The possibility of high inflation at this stage can only be caused by 2 things: excessive money printing or sufficient employment. I don't see either one can happen.


From TA, S&P and DJ are moving into a very tight range around EMA200. Nasdaq has been the strongest because it's well above EMA200. So market is waiting for new catalyst to make a move next week. Could it be the US Treasury autions next week? I don't know. I'm 100% in the market, so will buckle up my seat to take the ride with market next week.