Weekly Market Update -Year end 2007

As 2007 draws to a close, I will wrap up with the final post for the year. It's been somewhat of a rocky year in the markets, with 3 significant price dips occurring in February, Jul/Aug, and Oct/Nov.

The major US indexes finished as follows (1 trading day left): DOW +7%, Nasdaq +10%, S&P 500 +4%, and the Russell 2000 -3%, the only loser in the group. The Homebuilders and Financials were were probably the worst performing sectors.

The 10 year Note and the 30 year Bond ended higher, with corresponding lower interest rates.

The US Dollar lost a lot of ground this year, helping to drive up commodity prices. Oil and Gold were up significantly, along with Corn, Wheat, and Soybeans.

Foreign markets fared better than the the US markets, with China, India, and Brazil leading the way -notice that we are at the bottom of the pile! (adjust slider to see the full year).

This was a slow week in the markets due to the Christmas holiday. Lets see what 2008 brings. My predictions -I think we will see more inflation, higher oil and food prices, and another rocky year in the markets as the 'debt' bubble begins to unfold -individuals are mired in debt, and the country is mired in debt. Foreclosures continue to rise, and now credit card defaults are increasing as well. Also, we may see a further drop in the US Dollar, and another good year for Gold -oh, and maybe a recession too.

National Debt Clock

News Stories:
Chinese stock market wraps up stunning, volatile year.
Bankruptcies likely to rise again in 2008
American's credit card defaults seen surging
2008 ETF Predictions

Weekly Market update -Dec22

We finally got some upside movement in the market this week, especially on Friday (Santa Claus rally?) Strong earnings from RIMM and Oracle helped to give the market a boost, along with foreign aid for some of the ailing financial institutions (see news below). Interestingly enough the bank shares didn't really participate in the rally.

The US Dollar continued to gain strength, while Crude Oil and Gold also held their ground. Bonds were up all week until Friday when the stock market rallied -I think we will have this seesaw action in Bonds for a while.

Looking ahead, we could see this rally continue into year end and into the early part of January when earnings season starts again -we will wait to see how that affects the market then.

HAPPY HOLIDAYS TO EVERYONE!

Market News:
Morgan Stanley Posts Loss, Sells Stake to China
Merrill Lynch said to receive $5 billion investment from Singapore’s Temasek Holdings
Chrysler said to be 'operationally bankrupt'
How Goldman profited from subprime meltdown
U.S. stocks to continue Santa Claus rally next week

Sub-Prime:
Bear Stearns Posts First Loss in 84 Years
European Central Bank Pumps $500 Billion into Banking Systems
Analyst warns Merrill's write-downs may mount
Credit Crisis Hits Top Bond Insurer
Bond insurer defaults threaten big banks

Weekly Market update -Dec 15

We got some excitement in the markets this week -the Fed announced an interest rate cut on Tuesday, and the market tanked! The next day the Fed announced another attempt at a sub-prime/credit fix, and the market took off, then it tanked again! On Thursday and Friday we saw more selling -it was not a good week for the markets (looks like my predictions last week for a weaker market came through!)

Every week it seems we get more news about sub-prime and credit problems; this problem just isn't going away. Citigroup shares continued to fall, along with Washington Mutual, Bank of America, and other financial companies.

The US Dollar rose significantly this week. Interestingly we also saw the price of Crude Oil rise to over $90 again. Bonds continued to fall, reflecting fears of inflation and indicating higher long term interest rates.

Going forward, it seems we are at a crossroads again where the market could rebound from last week's selling and give us a year end rally, or we could see some more selling back down to the August lows again. No good indicators of direction at this point -next week we should have a better idea. Next week is also expiration week for Options & Futures.

Market News:
U.S. Stocks Decline as Fed Fails to Assuage Recession Concern
U.S. stocks seen rocky next week as investment banks report
U.S. Housing Crash Deepens in 2008 After Record Drop
Overview: Central bank action fails to convince

Citigroup Rescues SIVs With $58 Billion Debt Bailout
Money-Market Rates Fail to Respond to Bank Measures
U.S. November Consumer Prices Rise More Than Forecast
Greenspan Says Recession Odds Are `Clearly Rising'
Dollar Rises to 1-Month High Versus Euro, Yen on Inflation, Fed
Energy and agriculture up on robust demand

Weekly Market update -Dec 8

The markets continued to move up this week, although on light trading volume, which would indicate a weak rally. Of course all eyes are on the Fed next week with the expectation of another rate cut. Sub-prime credit concerns still dog this market though, even with the announcement of a new plan by the President this week to help curb foreclosures.

The US Dollar continued to gain strength this week, helped by Canada and Great Britain dropping their interest rates. Also, we could see Oil continue to drop, maybe down to the $80 level.

Longer term, I continue to see a weak market moving forward.

News stories:
Bush Aims to Prolong Expansion With Subprime Freeze
Paulson Mortgage Plan Surfaces Too Late to Stem Housing Slide
Bank of England Cuts Rates, Says Inflation Will Slow
Canada dollar drops after BoC interest rate cut
Big Fed rate cut may spur a rally
Dark clouds gather on Wall Street

Weekly Market update -Dec 1

The market moved up nicely this week, gaining almost 400 points on the DOW, after comments from the Fed indicate another rate cut might be in the works. Lets see if the market can keep going on the upside.

The US Dollar finally started to regain some ground this week, causing Gold to fall below $785 and Oil to drop below $90. Meanwhile, the Housing woes continue.

Next week we may see the uptrend continue in the market, though from a technical perspective the charts seem to indicate a false rally.

News stories:
Hope grows for a half-point cut
Don't look now: Here comes the recession
Citibank Receives Emergency Cash Injection
Desperate Citigroup looks East for cash
Dell Reports Revenue of $15.6 Billion in Q3
Bank stocks: Buyer beware
October foreclosure filings surge
Supply of homes on market at 22-year high
Housing Slump's Third Year to Be `Deepest' Since WWII
Number of Americans on unemployment nears two-year high