the week ahead is sure to be volatile but economic data should provide more insight. Here are some reports and news to consider.

*look for our commentators every Monday and Thursday on CNBC Morning Call 8:30ET*

Michael Maniatis
Market Strategist
Lasalle Futures Group
888-325-9300
mmaniatis@lasallefuturesgroup.com  http://www.timemeansmoney.com/
If you would like to discuss markets or strategies further I may be reached at the above contact information.
*RISK DISCLOSURE: FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS, AND IS NOT SUITABLE FOR ALL INVESTORS. ONLY RISK CAPITAL SHOULD BE USED. MARGINS ARE SUBJECT TO CHANGE. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. AN INVESTOR COULD POTENTIALLY LOSE MORE THAN ORIGINALLY INVESTED.*

Monday brought news that the Federal Reserve will convert investment banks Goldman Sachs and Morgan Stanley to traditional bank holding companies. Closer supervision and new capital requirements should be seen as a positive for the markets as the Fed has made a call to action to provide further market regulation. 

For tomorrow, in the aftermath of Hurricane Ike that brought floods from Houston all the way up to Chicago, look for weak  ICSC-UBS store sales to have a continued negative impact on the US Dollar Index and even further  US  Equity Indexes. Wednesday and Thursday's existing home sales(5mil, probably right in line) and new home sales should be considered more of the same vanilla news we have seen this year, but ultimately another reason for continued fallout in the weakening US Dollar, especially because investors and traders want to see instant gratification to the markets with the US bailout package. However, the trickle-down effect probably won't be seen for some time. In my opinion investors and traders should look to Friday's GDP report before buying dollars. The US pandemic credit strain has passed to a world economy that hasn't felt the full weakening effects. Because the Fed has decided on a course of action may cause investors to buy the dip in the dollar. I would look to see if 75.00 in the December US Dollar Index (old resistance) becomes a new support level or if the mass unclogging of debt by the Fed puts the dollar on the defensive and reignites the inflationary spiral this year.

Markets indicate US rate increases have been put on the back burner for now. We're now looking at a big debt that tallies some $700 billion in bad debt from mortgage-backed security packages and another 400 billion to guarantee money-market, 401k, and mutual fund type investments.  That this massive 'unclogging of debt' strategy will actually provide stability and 'kick start' the US economy is still unknown. What is known is that the heavy burden of cleansing this debt will be assumed by the taxpayer. Lower mortgage rates could be the solution to help Main Street help Wall Street. chart courtesy of barchart.com

*RISK DISCLOSURE: FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS, AND IS NOT SUITABLE FOR ALL INVESTORS. ONLY RISK CAPITAL SHOULD BE USED. MARGINS ARE SUBJECT TO CHANGE. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. AN INVESTOR COULD POTENTIALLY LOSE MORE THAN ORIGINALLY INVESTED.*