More Positive News . . .

Today's inflation report, the CPI rising 0.2%, is further evidence of at the very least a temporary stabilization of inflation. We also note the continuing slide in gold and today's new 2006 low being made by crude oil as further vindication of the Fed's decision to leave short term interest rates unchanged. We suspect that the next Fed meeting will result in no action. This is good news for the financial markets and both stocks and bonds are up this morning as a result.

We think that the earnings reports that will start to filter in the next several weeks will be the key for a meaningful stock market advance. Pay particular attention to any statements regarding the outlook for the fourth quarter as positive comments should hold the key to driving prices higher.