REVIEW

The market gapped up on Monday, rallied to SPX 1792 in the opening minutes, then pulled back until just after the FOMC statement at 2pm on Wednesday. After that the market soared right into late Friday afternoon reaching all time new highs. For the week the SPX/DOW were +2.7%, the NDX/NAZ were +2.3%, and the DJ World gained 2.1%. Economic reports for the week were quite positive. On the uptick: the NY/Philly FED, industrial production, capacity utilization, the CPI, NAHB housing, housing starts, leading indicators, Q3 GDP, and the current accounts deficit improved. On the downtick: building permits, existing home sales, the WLEI, the M1-multiplier and weekly jobless claims increased. Next week is highlighted by Durable goods orders, the PCE and Consumer sentiment.

QUANTITATIVE EASING and the STOCK MARKET

A wild week, to say the least, and an informative one too. Prior to FED chairman Greenspan leaving in early 2006…