Sunday, 28 February 2010

Weekly Wrap: Your source for stock, stock market, and stocks info

Weekly Wrap

The market was pretty much unchanged for the week. There were some sharp moves. The S&P 500 plunged on Tuesday and Thursday mornings only to comeback immediately. That type of action is very strange to say the least. The market is unable to sustain a measurable move downward. It seems every time the market seems it could be starting a decline, a bid comes back underneath the market and it magically comes back at the end of the day. The longer term trend of the market remains up, although we may be in a shorter term correction. Some of the market pundits that I listen to like Marc Faber, Jim Rogers, Bob Prechter, Peter Schiff, etc. have differing views but ultimately they see mistakes being made by authorities, unsustainable markets, and a financial reckoning in the future. To me these things haven’t started to happen yet. We experienced the initial decline in 2008 and we are in the rebound period. Since the March lows, markets worldwide have come well off their lows. Now, it seems like we are hovering but really with nowhere to go. The consumer confidence report was released on Tuesday and it was disappointing. It shouldn’t be a surprise to anyone who has been looking around in their local communities. The economy is not recovering and the below average figure of 46 is reflecting the social mood. A new month is starting for the markets next week. February was essentially a sideways month. I thought that the burgeoning decline that started in January would carry over into February, but the market reversed course and went higher. The opening range for February gave no clues to the direction of the market. The opening range of March may be a little more helpful in determining the next move. We’ll just have to wait and see how the beginning of this week pans out. I don’t have any idea which way the market could go because I can see the market A) going higher, B) start plunging, or C) continue moving up and down with no trend. None of those outcomes would surprise me.

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