It's time for us to be back with the financial market this week. Let's open and discover the market with Pitguru Frank LaMantia!


A few things have stimulated the market this morning that could create a buying interest. Warren Buffet mentioned that Berkshire Hathaway may commit to a record spending spree over the next year. Apparently, he sees value in companies that might be struggling which could add strength to Berkshire. Also fueling the bullish behavior this morning James Bullard who is president of the St. Louis Fed. He mentioned that the rise an oil may have not been big enough to damage the recovery and that the U.S. seems to be on track for 2011.

Traders appeared be protecting longs heading into the weekend, most likely because they did not want to be caught off guard like last weekend with the oil situation in Libya. This safeguard might be the right play in the near future when doubt circulates. Many are still concerned about the Middle East and there could still be issues. Tunisia is having problems as protesters clash with security forces and the issues in Libya are getting worse. Qaddafi seems to have his back to the wall as diplomatic immunity has been lifted on him and his family. Italy had a treaty which had a non-aggression clause in it which has been terminated. Even if Qaddafi wins this battle there may be significant repercussions for his actions. The one issue that does stand out is protestors are starting to congregate in Saudi Arabia. The people want more political rights. Saudi Arabia is the world’s number one oil producer.

Consumer spending was announced and seems to have slowed down despite people earning large incomes. Spending was up 0.2% which is the smallest increase in over 7 months. It was expected that a 0.4% rise would keep the streak alive. Some points might be given back after this announcement. Also, if Saudi Arabia’s current situation escalates be ready for some pressure to the downside.

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