• Service industries in the U.S. grew in October at a slower pace than anticipated, a sign growing joblessness may restrain consumer spending.  The Institute for Supply Management’s index of non- manufacturing businesses fell to 50.6 from 50.9 in September.  The index was projected to increase to 51.5, according to the median forecast of 77 economists surveyed by Bloomberg News.

• (1) The ISM non-manufacturing gauge of new orders increased to 55.6, the highest level in two years, from 54.2 the prior month. (that's a positive) (2) The index of employment dropped to 41.1, the lowest level since May, from 44.3.  (that's a negative, at least if you think jobs matter)  (3) A measure of prices paid climbed to 53 from 48.8. (and that folks, is inflation and an offshoot of a weak dollar - bringing products into the country is getting expensive which will squeeze profits)

•  Mounting unemployment may mean consumer spending will only accelerate with government assistance, indicating the emerging recovery may lose momentum as stimulus fades.

I am now at the point I am wondering if the speculator class would prefer bad news or good - I think it might be bad.  Why?  Because bad news means more and more easy money for as far as the eye can see.  Now that we've "stabilized", good news is no longer "good" ... it was "good" for a while because it showed that paper printing prosperity could take us back from the abyss.  But now good news will mean the potential end of free money and an economy that has to somehow stand on its own.  And what is America without free money?  We're years away from that point... if ever? 

As for the market, we've jumped back over the 50 day moving average and the volatility continues - it remains too tricky for me, I'm basically sitting it out as the lemmings rush back and forth - hour by hour.  I don't see what has changed from Monday other than greed to fear and back.  While I expect nothing really to change from the Fed statement at 2:15 PM, and my assumption is the market will "love" that - who really knows.  Well apparently one firm knows... and today they wanted the market up, so up it is.

I'll be glad when this week is over and news events don't dominate as much.  Right now the time frames are really short; many stocks I own in small quantities have thus far have simply rallied back to below key resistance - perhaps the fireworks display at 2:16 PM will set them afire and catapult them higher.  We'll see.