Lowe's Drives the Markets Higher

Lowe's, the home improvement retail chain posted better than expected earnings. Although the numbers were still considerably lower than last year, the company's outlook was a little rosier than last quarter. We also got an uptick in the housing index which spurred investors to buy stocks. If the housing market is bottoming, the bull market must be on its way. We hope this is true and we hope our recent thoughts about the impending troubles ahead are wrong. This uncertainty keeps us still long some stocks but a little bounce in the economic data and corporate earnings which are declining less than previous quarters is nothing to get too excited about. Time will prove us right or wrong but we will continue to raise cash as the markets fly higher.