Good Morning All,

A more contrite group of auto executives will meet with Congress once again today and it is likely that some deal or another will be forthcoming. Futures are up this morning as are European markets despite today's descent in Japan. This is Tuesday and some important numbers need to be surpassed and held by day's end if my call for a bullish two weeks is going to get started . Yesterday's huge decline in Toronto was typified by major losses in golds and oils; but that was really just the surface picture. Aside from the fact that this was a low volume sell-off both here and in New York, it would seem that profit taking played a large part in this activity. Petro Canada par example lost 4$ plus over the trading day, a large number until one considers that it had gained over 13$ during the previous five and it was one of many such trades.

The Canadian political situation would be laughable were the economic problems not so serious. Some may believe these latest opposition manoeuvres to be unnecessary and self serving while others are cheering them on. Allow me to make one point; Canada is in surplus and the present government does not believe that economic stimulus is needed. In the U.S where deficits have reached so far past historical records that they are close to unfathomable, stimulus will be increased under Obama, not diminished, and few, if any, economists oppose these scheduled expenditures. The risk of doing nothing in this deflating economy is far greater than the risk of growing larger deficits, or in our case, creating them.

Look for a close over 850 on the S&P 500 to confirm an advance of meaningful proportion.