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
Well the markets took it on the chin today after a very disappointing jobs number. Only 41,000 jobs were added by the private sector while over 390,000 jobs were added by the government, mainly census workers. This economy needs the private sector to hire in meaningful way in order for the recovery to sustain itself. This seemingly is what Wall Street also needs to see in order to think about a consistent appreciable market environment. Unfortunately it looks like volatility will be continuing in a downtrending market. That is not to say there won’t be pockets of opportunity, one just has to be very selective, spread out, and small with entries while building select positions over time.
Good luck to all
~George
Tomorrow could be a crucial day and an inflection point as to where the markets are headed for the summer. A strong jobs report should alleviate some of the concerns going on over in Europe and place the focus back on the fundamentals here at home. A strong report could also instill some traction and stability in the marketplace and give investors that have been sitting on the sidelines the confidence to deploy back into the equities markets.
Good luck to all
~George
A very nice mid-week rally. Again stability is the preferred mantra in this market and if Friday’s employment report is strong, not only could we see stability, but just maybe the perfect storm is setting up for the beginnings of a summer rally. Of course any kind of significant negative headline that potentially comes out could put us back to consequential volatility and figuring out what to do next. Nonetheless a welcome sight is today’s market action.
Best of luck to all.
~George
Okay that is done. The Markets fell almost 8% in May, marking one of the worst performances in the month of May since 1940. However historically when May experiences a big drop, subsequent summer months have often posted double digit gains. Let’s see if this historical pattern holds true.
Happy Investing,
~George
Looks like the markets are seeking direction and cannot make up its mind. The remnants of the fear that is hanging over the market pertaining to European debt crises seems to be the culprit and still has a bit of a grip on investors’ minds. Although the VIX (fear index) has come down from its most recent high of 48.20 to the mid 30’s or so, it is still a bit high for my liking.
As Memorial Day weekend approaches lets see how the markets settle out and lets not forget what the real meaning of Memorial Day is.
Respectfully yours,
~George
Last week’s volatility was not for the faint of heart. Fear and uncertainty has gotten the best of the markets lately however considering how far the markets have come from since the March 09 bottom, this type of correction is not surprising. I am looking for signs of stability, especially internationally, before I continue deploying resources into the marketplace. The events that are happening globally are very fluid so one has to be prepared to act when given the cues.
A great week ahead to all.
~George
Well fear currently has its grip on the markets with the VIX (fear index) soaring to its highest levels in over a year. These are times where investors must be patient and prudent pertaining to not getting caught up in the fear that currently exists, yet protecting your asset allocations. In my experience, cooler heads most always prevails.
Good luck to all.
~George
This morning the European hangover and subsequent fear continued with the Dow down at one point 184 points. However by the close cooler heads prevailed and most of the broader indexes closed positive including the small cap indexes. Hopefully stability comes into the marketplace and investors can begin to focus on more of the fundamentals rather than the fear that has taken hold over the past couple of weeks.
Happy Investing.
~George
Okay, 2 weeks ago the Global markets were freaking out because the European debt markets were in a tailspin, so last Monday those markets were bailed out to the tune of $1 trillion by the ECB and others. The markets liked that, at least for a minute. Then this past week the new concern is whether or not Europe can grow its economies. Talk about an emotional market. First things first. The ECB had to stabilize its debt markets and instill confidence to the global investment community, which they did. Now the markets want everything to be perfect right away. Not going happen! Patience is an understatement, but must be exhibited as the markets unwind and adjust. I think for this week a stable market environment would be the healthiest outcome for the short term.
Good Luck to all.
~George