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
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