Stimulus...Will it Work?

Looks like the market is trying very hard to make up some lost ground this week. The market has made up losses in the afternoon the last 2 days. We were down 240+ yesterday, and was able to make up almost all of the losses on strenght in tech. Today, we were down almost 100, but trying to make up some ground currently. Crude Oil is also trying to retrace some lost losses. I think the last two days the market is trying to find some sort of bottom, as news of the Stimulus Plan approval is heating up. Question is how will or will the Stimulus Plan work? My take:

It will have some sort of short term positive aspect on the market as evidenced by the way high tech has acted the last few days. I am a true believer in that Technology must lead the market out of its rut, and in the short term I am seeing that.

The Obama Stimulus Plan is not going to help the economy in the short term, its not going to stop the pace of job losses, or even the problems the banks have. What it will do is have some effect towards the end of the year, but most importantly this will hit our economy in 2010. Which I think is the perfect situation, because I think the economy will start to pick up again in terms of positive GDP revisions starting in 4Th QTR 2009. I also think housing bottoms in 1st-2ND QTR 2010, right when the economy will feel the full effect of the Obama Stimulus. Also by the end of the year you will see a deceleration in job losses. Remember that the stock market moves about 6-9 months ahead of the macro economy. You see.....I told you this Obama guy knows what he is doing! America did the right thing.

Again....Am I saying the market has bottomed? NO!
Am I saying put all of your money in the market? NO!
There are still tons of issues effecting our delicate financial system. I still think Bank Nationalization is inevitable, and that other asset classes like:

1- Hybrid Securities
2- Commercial Real Estate
3-Credit Card Delinquencies
4- Auto Loan Problems
5- Continued job losses

Still pose a huge burden on the system, but with this Stimulus Plan going into effect, as well as any type of a "Real Housing Plan" can severely limit the losses the market could have had with out such plans.

JUST FOOD FOR THOUGHT!

Happy Trading-