Market Watch with Tom Waitt

October_10th_2012.mp3 Economy Shanghaied    Global economic activity is the key to shift pessimistic forecasts to a more optimistic outlook. Shanghai Composite Index (Click For Larger Picture) The European crisis has toned down but is a long way from producing impressive economic results for some time. The U.S. economy is stuck in a political shoot out that will drag out to the last second of the Presidential election and whoever wins is still likely to have little improvement for the balance of 2012. The wild card is China, the International Monetary Fund predicted China's economy, the World's second-biggest, will "soft land" by growing 7.8 percent this year and 8.2 percent next year, boosted by interest rate cuts in June and July. China has targeted growth of 7.5 percent this year. Yesterday, the Shanghai Composite Index moved above its 20 and 50 day moving averages and showed early signs of outperformance relative to the S&P 500 Index. Strength follows news that the Chinese