Week of the BEAR
From February 5 of this year until April 26, the DOW [DJIA] rose from 9,835 to 11,258, an astonishing 1,423 point increase. Over the past few weeks market gurus and experts have debated constantly about how and when we would see a market correction. Most thought we would experience a small retracing of the gains [...]
Wednesday’s Close: May 5, 2010
Overseas negativity continued to depress the U.S. equities market today. Riots in Athens left at least three dead as citizens protested their government’s new, bailout-mandated austerity measures. Ratings agency Moody’s also heightened anxiety by warning that it may downgrade Portugal’s government bonds. Fortunately,positive employment data was a plus particularly ahead of Friday’s nonfarm payrolls report [...]
DARK TUESDAY: May 4, 2010
Monday’s optimism about a bailout package for Greece reversed today, with investors growing concerned about a potential domino effect in the euro zone with fears of Spain and Portugal following Greeces lead. The CBOE Market Volatility Index (VIIX] skyrocketed more than 18% as the Street’s panic escalated. The major market indexes all traded off [...]
Copper and S&P 500
In the past few months Copper has shown itself to be a leading indicator of the direction of the S&P 500. I am uncertain as to the reason for this correlation but realize the Copper/S&P 500 relationship is important to consider when attempting to predict market movement. The charts show that Copper bottomed in late [...]
MARKET DIRECTION:
A week ago I stated that despite the worries over Greece and Goldman and that the market rally appeared to be weakening, volatility and the re-emergence of buyers after down days was still bolstering the markets.
The question remains: how and when this rally phase will end. Those concerns remain intact today and [...]
This Week’s ECONOMIC CALENDAR: May 3, 2010
Monday
* Personal income and spending in March,
* Construction spending for March,
* Institute for Supply Management (ISM) Index for April.
* Auto and truck sales reports for April.
* The Clorox Co. (CLX),
* [...]
GUT INSTINCT:
Would it not be great if every stock we traded performed as this one, steadily rising on a 45 degree angle with only minor retracings? Ah the comfort of an efficient stock. However I have never seen one this good.
Despite all the advances in computers over the last 50 years, no computer [...]
