The loss in the futures (Dow, SP500)is about half of what it was 90 minutes ago.

Yes, gold eerily quiet on this news.

If you haven't seen this, it's worth a look (ROB TV).Berman is always excellent.

11:13 AM ET
Business Morning with Jim O'Connell
Berman's Call
Larry Berman, chief technical strategist, CIBC World Markets

Some charts on why energy stocks aren't advancing here.

Also this:

AIG earnings fall 29%. This will also weigh down the Dow today.

24 Hour Spot Gold chart at Kitco is worth a look:

http://www.kitco.com/charts/livegold.html
Aug 10 2006, New York Time: 8:03:38

(Might have changed by the time you view it though)

Just heard a talking head on one of the financial shows say that markets always rally after a terrorist attack. Now there is a bonafide trading strategy. Wonder how you would market that on late night TV?

Kudlow would be smart to keep an eye out for his tennis balls. They're the only ones he has.

Now that the futures markets say we are gonna "Ho Hum" the terrorist threat, here's my updated Economic Scorecard:

"Highlights
Initial jobless claims rose 7,000 in the Aug. 5 week to 319,000, slightly above expectations but good enough to push down the 4-week average to 308,750. There were no special factors in the latest week. Initial claims remain on the high side while continuing claims, though still near a multi-year low, are at their highest average since March. Markets were not reacting to the data which were posted with an as-expected trade gap headline. "

THREE OUT OF FOUR

Bill,
Your advice is well taken. I happen to remember very well when Kudlow was David Stockman's admirable right hand man at the OMB during Reagan's first term. Since then, his on-screen persona has been the mouthpiece for the Republican agenda, for better or worse, i.e., his credibility has gone down the toilet.

it is great to see that a plot to kill so many was foiled. i think the DOW 30 and NASDAQ indexes will put on a brave face and trade even or slightly higher today, but soon will decline dramatically, perhaps to the large dip Bill has predicted.

Questions For Bill:

1. What effect does options expiration Friday have on the market? Is there any correlation to the call/put ratio of a stock or an index moving the market towards or away from a strike price?

2. With the likely new rules for airline travel, where liquids will not be permitted, would you raise your buying level on a stock like PG which sells lots of toiletries as travelers will have to purchase them at their destination?

Bill:

Thanks for all your advice. Do you think this is a good time for a young investor to begin putting more of my money into cash, for the short-period? Or plug away at the index funds?

Andrew
I am a novice and have learned a lot and am doing well. Bill cannot give advice as of right now cause he is not registered but soon will be. As i understand what some of the more seasoned people and professionals are stating on this site is that they are preparing for the market to have a good size correction and most are holding most of their portfolios in cash, i for one have taken their advice, if you presently have some cash in the index funds today may be a good day to sell into what little strength there is in the market and hold more cash. Also the precious metals are having a down day, this is due to what Bill calls government selling of gold to defend the dollar, might be a good idea to purchase a precious metals etf. I am hoping that some of the more seasoned people who comment on here would also respond to your question and perhaps help you out more.

Bill,

Jeremy Siegel is Professor of Finance at Wharton, a partner of Michael Steinhardt, widely admired for both his books and observations on the stock market and, you might recall, called the 2000 bull market top to the day.

tgifbipo, thank you for the clarifying comments that I, too, found useful.

Andrew, I'm a novice investor. I was alerted to the idea of cycles late last year. Another reason why I've gone heavily into cash over the past many months is that I'm now mindful that we are coming to the end of a four-year cycle. Assuming that there really is something to cycles -- and I think there is -- then we are likely see a really strong correction sometime within the next five or six months. None of this is exact, of course.

Think of it as a risk/reward play: if we have a severe drop, you'll be glad you were in a lot of cash and can start buying again. If we don't drop, well, your loss is the opportunity cost. But I'm betting with people like Bill: the better place to be for a while is in a lot of cash.

Gemma, Bill is very good as are a lot of the others, read, reread, and fully understand, also, a lot of good links are posted here as well.