Stock Market Update -Jun 28th

We saw some more selling in the market this week, with the energy sector leading the way (see chart below). However, Thursday's gains reversed some of the selling. The quarter ends this coming week, and we will begin to see earnings reports coming in after the 4th of July holiday. This earnings season will probably tell us whether the recent market rally will hold up.

It sounds like a broken record, but new Unemployment claims for the week came in over 600,000 again, and five more banks were shut down by regulators this week (list).

Commodities: Oil prices are holding up around $69 per barrel so far. Gold was up for the week, while the US Dollar was more or less flat. Bond prices recovered, as the huge auction of new debt went well.


Next week is a short week with the markets closed on Friday for the 4th of July holiday. The monthly payroll and unemployment report will be released on Thursday -sometimes a market mover. Otherwise it could be a quiet week.

Market analysis: We are still chopping around in a trading range, as we await earnings reports after the holiday weekend. The up-trend from March 9th has stalled for now.

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Stock Market Update -Jun 21st

This week we're seeing red in the market as a pullback is now underway (in my opinion), after having topped out at the January high (see chart). We could see a bigger pullback in the coming weeks.

New Unemployment claims for the week came in over 600,000 again, and three more banks were shut down by regulators (list).

Commodities: Commodity prices are falling. Oil closed around $69 per barrel. We could finally see a pullback in oil prices at this level. Gold closed around $934, and the US Dollar was more or less flat for the week. Bond prices fell somewhat. We could see Bond prices slide some more as we see a record auction in Treasury Bonds next week ($104 billion).


Next week will include a Fed meeting, and a couple of economic reports.

Market analysis: This week's pullback could be indicative of a larger pullback to come. We may get a bounce following last week's drop, only to be followed by a larger drop, so be cautious. If RIMM and POT are any indication, look out below (see charts).


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Stock Market Update -Jun 14th

The market was basically flat this week (S&P 500), still holding above the January high (see chart below). The DOW is not quite there yet, though it did close above the 2008 'year end' value. New Unemployment claims for the week came in over 600,000 again (601,000), though the trend finally seems to be reversing a bit.

Commodities: Oil prices closed higher again, around $72 per barrel. Gold prices fell to around $940, while the US Dollar was down for the week. The 30 year Bond prices recovered a bit.

Next week we get a number of economic reports, including the PPI and CPI, and housing starts. Friday is expiration day for options and futures, and also near the end of the quarter, which could add to the volatility. RIMM also reports earnings on Thursday -will it reverse or push higher? Also reporting are FedEx and Best Buy.

On a side note, this week Blackrock purchased Barclay's investment business for $13.5 billion. This now makes Blackrock the biggest asset management firm with $2.7 trillion under management ($2,700,000,000,000)! What ever happened to 'too big to fail'? Isn't that what got us in trouble with firms like Bear Stearns, Lehman, AIG, Citigroup, etc...

Market analysis: Still no clear short-term direction at this point -options expiration on Friday could move the markets in either direction; many traders are still looking for a reversal at this level.

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Stock Market Update -Jun 7th

The market was up nicely this week, finally surpassing the previous peak seen in early January (see chart below). The payroll report on Friday was much better than expected as far as job losses, though the unemployment rate is now up to 9.4%, the highest in 25 years.

GM filed for bankruptcy on Monday, with the government now owning 60% of the company as part of a restructuring plan.

New Unemployment claims for the week came in over 600,000 again, and another bank was shut down by regulators (list).

Commodities: Oil prices continued to rise, closing around $68 per barrel. Gold prices fell to $960, as the US Dollar turned up this week. Bond prices continued its steep drop in prices (higher long term interest rates!).


GM and Citigroup were removed from the DOW index, and replaced by Cisco and Travelers.

Market analysis: Still no clear short-term direction at this point -we could see a continuation of last week's up-trend, though many 'traders' are looking for a reversal at this point.

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