GOIH Capital Markets: Market Overview

Our indicators predict the market to be flat to slightly lower over the next several trading sessions pending the Fed's next FOMC meeting on Sept. 18, 2007. We are hearing rumors that the Fed might not cut the Fed Funds rate.

Wall St. is clamoring for the rate cut as if that will be the panacea for all that is wrong in this market.

Our view of the situation is that if a rate cut is announced, it will have a meaningless effect on the fundamentals, but only have a psychological fix for the financial sector rather than the economy as a whole.

Consumer retailers are taking it on the chin the last several trading days with decreased equity prices resulting from a diminished outlook on consumer spending.

We see volatility increasing as we near Sept.18 with wild swings in the market.