After last Friday's selloff in the DOW, we recovered most of the losses this week. MSFT moved up a huge 4.5 points, the biggest move this company has seen in many years! On the flip side, Merrill Lynch reported a huge $8 billion write down for this past quarter due to sub-prime issues. The sub-prime debacle isn't over yet folks.
This coming week we have the Fed meeting. This will probably be the catalyst to confirm whether the market starts a new up trend or down trend; we could also see some action in the US Dollar. Everything is moving up (DOW, Bonds, Oil, Gold, Euro), and this isn't normal; something has to give!
Right now there is no clear sense of direction in the stock market, so be careful. It is right in the middle of what could be an ABC pattern up or down. I suspect we might move up to the 1540 level again on the S&P 500, and then start heading back down.
Meanwhile Oil hit $92 this week, Gold hit a 28 year high, and the US Dollar sank to a new record low.
Reuters Financial Videos
Weekly Market Update
We got some action this week! On the 20 year anniversary of the 1987 crash, we finally broke down with the DOW falling 366 points on Friday. Guess the market didn't like some of the earnings reports this week -more to come next week. Credit problems are still lingering, with the bank stocks reflecting that this week (BAC, C, WM, etc.) See also: 3 Largest Banks Team on Rescue Fund
By the way, for you chart readers out there, nice double top on the S&P 500 at 1580 (see Oct 6th comment). I wouldn't be surprised to see the market keep heading down, with the next target being the August 16th low of around 1380 -watch out below!
GOOG hit $658 this week -now the 10th largest company in the US!
Oil touched $90 per barrel. Bonds are moving back up too (safe haven?) Looks like traders are predicting another rate cut from the Fed this month.
The US Dollar continues to weaken, hitting all time lows this week. The G7 meeting is in progress this weekend too -don't be surprised to see some action in the currency markets next week as a result.
By the way, for you chart readers out there, nice double top on the S&P 500 at 1580 (see Oct 6th comment). I wouldn't be surprised to see the market keep heading down, with the next target being the August 16th low of around 1380 -watch out below!
GOOG hit $658 this week -now the 10th largest company in the US!
Oil touched $90 per barrel. Bonds are moving back up too (safe haven?) Looks like traders are predicting another rate cut from the Fed this month.
The US Dollar continues to weaken, hitting all time lows this week. The G7 meeting is in progress this weekend too -don't be surprised to see some action in the currency markets next week as a result.
Weekly Market Update
A tale of 2 markets -the DOW and the S&P 500 hit new 'all time highs' this week, while the Nasdaq still has a looong way to go before it gets back up to the 2000 highs! In general though, not much action in the US markets this past week. Quarterly earnings reports start coming in this week and should start moving the market in one direction or the other.
The Chinese stocks are still on fire -here is a look at the Hang Seng index, and the ETF (Exchange Traded Fund) for the China market (FXI) -are we in bubble territory?
Also, as the US Dollar drops, Oil gets more expensive; so does Gold. Oil surpassed $84/barrel this week.
The Chinese stocks are still on fire -here is a look at the Hang Seng index, and the ETF (Exchange Traded Fund) for the China market (FXI) -are we in bubble territory?
Also, as the US Dollar drops, Oil gets more expensive; so does Gold. Oil surpassed $84/barrel this week.
Market update
Well we got the much anticipated September payroll number on Friday, and the market liked it. The market was up nicely for the week, with the S&P 500 finally hitting an all time high! We could see a double top here for the S&P 500 (July high), although the Nasdaq already blew past it this week (AAPL, GOOG, and RIMM leading the way). Also this week, Chinese stocks were acting like internet stocks did in 1999!
Starting next week we have Q3 earnings -this will probably determine the market direction over the next month. Meanwhile the bullish trend continues.
Gold fell early in the week, but recovered most of that loss by the end of the week.
Starting next week we have Q3 earnings -this will probably determine the market direction over the next month. Meanwhile the bullish trend continues.
Gold fell early in the week, but recovered most of that loss by the end of the week.
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