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Warren Buffett Saves America

Washington Mutual (WM) moved higher on rumors that Warren Buffett might be considering taking a stake in the bank.  WooHoo!  Buffet buys America!  We’re saved!  Sorry for the sarcasm, I’m just sick of hearing that Buffett is going to save the country’s financial institutions in one fell swoop.

The CFO of GM says their focusing on global automotive operations and expects that area to improve in 2008.  Let’s hope he’s not hanging his hat on Germany.  German December retail sales, including cars and gas has been revised down to 0.4% from 2.2%.  GM also thinks raw materials prices will be lower than in 2006 and 2007.

The indices are trading higher today on all this great news.  Chuck has shown the charts for the Dow, and where we’re are looking for resistance.  If you are trading this rally, keep your stops tight and don’t chase price.  Materially nothing has changed on the economic front and there is plenty of selling into the rally.  Don’t be a bagholder.