The action in the market this week looks to be a yawner. With the July 4th weekend approaching it does not appear that anything of great significance will occur. Last week\u00c3\u00af\u00c2\u00bf\u00c2\u00bds sell off has left thevery short-term indicators a little oversold. While we don\u00c3\u00af\u00c2\u00bf\u00c2\u00bdt expect to see a significant rally, the short term oversold readings should underpin the market over the next couple of days.<\/p>\n
Looking further down the road, last quarter\u00c3\u00af\u00c2\u00bf\u00c2\u00bds gains look to be in jeopardy. The market has roared forward with the belief that now that the war in Iraq has concluded, and with that the reduced threat of terrorism, the economy should rebound nicely. However, the belief that the economy will rebound seems to be fully priced into market. What if earnings don\u00c3\u00af\u00c2\u00bf\u00c2\u00bdt meet the rosy projections built into equities. Any minor slips from the stalwarts in the market, or sluggish economic reports could easily send the market down five percent.<\/p>\n
The one bit of news that could be market moving is the jobs report this Thursday. If unemployment continues to be soft, that will eventually weigh on the confidence of the consumer. The last three months seems like the market has surged on a heavy dose of Hope. Hope earnings will improve, Hope the economy is picking up. Hope and Investing are a dangerously mix. The Jobs report this Thursday needs to show improvement or the hope in the market could unravel in a hurry.<\/p>\n
Until next week, Good Trading<\/p>\n
For the previous twelve years, Tom Hayden has been a NASDAQ Market Maker in a majority of the stocks listed in the NASDAQ 100. Over that time Tom has traded several billion shares of NASDAQ listed securities. Individual Accounts Managed by Tom Hayden are up 10% year to date. Questions, comments and inquiries are welcome and Tom can be reached at TEHayden@advantexmail.net. –<\/i><\/p>\n