Here are some interesting tidbits before the weekend.

The more I look at it, the more I think this rally in the market has been about businesses cutting costs rather than growing revenue, thus keeping earnings respectable. However, they cant keep cutting costs forever. They cant keep laying off people forever. After all, they have cut deep and laid off millions already.

Until revenue grows which then facilitates even higher profits, which then brings new jobs, how can anyone say we have a strong recovery?

It also appears to me that there has been a massive reduction in short interest, meaning shorts have covered thus pushing the market higher. This could suggest the rally is not being fueled by an influx of new money and new investors.

Also, President Obama’s two big issues sans the failed stimulus (waste) package are cap and trade (tax) and health care reform (destruction.)

As cap and trade could be in trouble in the senate, and health care facing trouble just getting out of the house, maybe the market likes the idea of two bills that would do terrible economic damage dying a slow miserable death. I know I do.

Tags: Economy, Government, Investing, Obama, Stimulus

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