Macro Outlook
The Dow Jones Industrials just set another new high.

Here are the three best reasons why you should pop the champagne corks and join the frenzy:

First off, the airplane crash in New York was not a terrorist attack. Come to think of it, there were no terrorist attacks in the United States at all this week, so let's make that two bottles.

Secondly, it was only a teeny-weeny little A-bomb, and North Korean missiles can only reach Alaska, which is only technically American soil.

And finally, November light sweet crude contracts are only up $0.11, and gasoline at the pump is down 20% from this week last year. Gas is still up about 14% from this week in 2004, and 43% from 2003.

More tonight…

Market Trends
The Battle Between Young and Old…

According to the National Retail Federation (NRF), Generation Y (the 82,000,000 that are aged 13 to 21 years of age in our country) “influence 81% of their families' apparel purchases and 52% of car choices.” They are purported to have more spending power than any other generation at their age that came before.

Even though Generation Y is ruling the family, Baby Boomers are ruling the road. Harley-Davidson Inc. (HOG:NYSE) reported a third-quarter gain of 18% due to new motorcycle models and sales. Revenues were up 14.3% and global sales increased by 8.9%. HDI's stock jumped slightly on the news, but then followed with a sell off. It's still, however, in a strong long-term trend.

Over the course of a few years, if you want to play the demographic trends, HOG offers a good opportunity on the Baby Boomer population… and clothing companies like Abercrombie & Fitch (ANF:NYSE) and J.Crew Group Inc. (JCG:NYSE) might be good picks to play the Generation Y phenomenon.

Material Profits
Today, I'll be attending the National Alternative Fuel Vehicles Day Odyssey. I'll get to tinker with the latest cars and talk to a number of exhibitors.

Expect a full report!

Trading Tactics
Although oil is bouncing slightly off the $57.22 low it set yesterday, the big news driving oil prices today will be the data that's expected to show that supplies of oil are still comfortably above their average levels for the current time of year.

Wachovia Corp. (WB:NYSE) is expecting this data to show that crude supplies rose 1.5 million barrels for the week ending October 6. Platts is expecting a 1.8 million-barrel climb, but Fimat USA is predicting a decline of 1.7 million.

As you can see, there is a wide variance in this number, so it'll be interesting how oil prices react when the data is released later today.

As for the markets, I'd like to make a prediction: In the month of October, the Dow will not see 12,000. Perhaps we'll get close, but I really think the bears are licking their chops getting ready to sell off this latest upside push.

Of course, we'll confirm with prognostication with the WaveStrength chart experts, but that's my personal take from the trading side of the house.

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