Now what the heck was that all about? Well you can start with the fact that the markets have moved approximately +60% since the bottom was put in in March of 2009, or you can blame it on the European crises, or you can blame it on the incessant high unemployment or you can blame it on Washington’s economic policies or etc.etc.

Point being there are a lot of reasons and excuses for what is going on in the markets and the economy. But from my perspective, until there is sustainable job growth in this country and abroad all markets will remain volatile, vulnerable and subject to the day to day, week to week and month to month political and economic headlines. This is a very complicated economic and market enviroment that we are in and it demands patience and prudence as it pertains to any investing decisions.

Earnings reporting season is upon us so this will certainly give us clarity as to the health and growth of sectors and companies.

All the best.

~George

This question now looms. On Friday the labor department will report the June unemployment numbers. Also things seem to be quieting down a bit over in Europe. So with the market correction that has taken place since the April 26th highs, are we fairly priced now and are the current risks factored in? To me the market action looks like a catalyst is needed for confirmatory direction. I have said in my previous posts that just maybe the upcoming 2nd quarter earning season could very well be that catalyst. This week should be pretty mundane although there could be some institutional window dressing at quarters end which is Wednesday and of course the Friday’s jobs report could be a market mover.

Wishing all a very good week.

~George

An article out today in the Wall Street Journal indicates that short term interest rates could remain near zero as far out as 2012. This consenus by most economists is due to the Feds assessment of the current state of the economy and how the European weakness could affect our economy here at home. As counter intuitive as it may seem this should be very bullish for the markets. Yes bullish! As long as the Federal Reserve and their international counterparts continue with accommodative interest rate policies, monies should not only continue to be deployed into the markets but at a higher velocity. Most mutual funds, institutional investors, hedge funds and individuals for that matter cannot afford to sit in sub 1% money. They have target returns that must be met or they risk the attrition that would occur with investors seeking to achieve their investments objectives. Time will tell how this plays out and when the Fed will begin to change its stance and until then let’s see how the upcoming 2nd quarter earnings look.

Good luck to all.

~George

The markets positive reaction was short lived. However what is very important to continue to see and what has been my recent mantra is market stability. This move by China could certainly help our exports and trade balance which can be very positive for our markets. Patience is key here and lets also see what the upcoming GDP numbers look like.

Happy Investing.

~George

Okay so this is the kind of week we have all been hoping for. Stability must occur first in order to think about a sustainable upward trajectory. It is also very encouraging to see the VIX index (fear gauge) below 25 in a continuing downward trend. As we approach the second quarter earnings season, lets look for signs of top line growth and hope that this could be the catalyst to take this market higher.

Have a great weekend.

~George

For you chartists out there it looks like the S&P has formed a double bottom and it looks like it wants to break through the 200 day moving average. Technicians love to point out this powerful chart pattern. What I personally would like to see is a prolonged continuation of stability in the markets with normal ebbs and flows. I think that type of action would bring the confidence into the market so that the funds that have been sitting on the sidelines will begin to put their money to work.

Continued success!

~George

A report out this morning indicates that industrial production in the 16 countries that use the Euro grew more than anticipated. I gotta tell ya, this goes back to how irrational fear took over the market place over the past month and a half or so and how powerful that emotion can be. Going back to my previous posts, my feelings are as long as we remain in an low interest rate environment with tepid inflation and accommodative global reserve policies, we should continue to be in a prolonged bull market. If we also begin to see top line growth on corporate balance sheets that could cement the direction of the market. Let’s see what happens.

All the best.

~George

Good Sunday to all. Once again a very volatile week, however the Dow did have its best weekly performance in almost four months. More importantly the closely watched VIX index (fear gauge) closed below 30 and the trend is seemingly lower which is a good thing for the bulls. Let’s see if there is a meaningful follow-thru this upcoming week.

Have a great week.

~George

To me it looks like the market is going to need some sort of catalyst to get it moving northward again. It might take the upcoming 2nd quarter earnings season  when companies begin to report their 2nd quarter results in July. Certainly there will always be a steady flow of economic and political news that could act as a catalyst, but what would be a welcome sight to the marketplace and a potential key catalyst is TOP LINE growth and expansion on companies balance sheets.

Happy Investing

~George

Even though the broader markets fell over 7% in the month of May making it the worst May for the Dow since 1940, the micro cap and small cap space continues to outperform. The bulletin board where many highly speculative issues trade realized a 60%+ increase to over $1.5 billion in gross dollar volume last month compared to May 09. That is quite impressive considering how poorly the overall markets performed. Let’s see how this week plays out in the markets.

Have a great week.

~George