Stock Market Update -Aug 30th

The market was more or less flat for the week. New Unemployment claims were below 600,000 again. And three more banks were shut down by regulators (list).

Commodities: Oil closed around $72 per barrel, while Natural gas closed under $3 again. Gold closed the week around $957, the US Dollar index was more or less flat for the week, likewise for Bond prices.



Market Analysis: The market seems to be stalling out at these levels as we close out August and summer trading. The 'pros' will be back starting next month so we'll see which direction they decide to take the market. Right now it's anyones guess, so I'll wait till we have a better signal on we are headed next.

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FDIC: Number of troubled banks rises to 416
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AIG Is Dead, Long Live AIG
Junk bonds' best days might be behind

Stock Market Update -Aug 23rd

The market rallied this week, surging to new highs for the year. The rally was broad-based, as seen in the sector chart below. The market seems to rally whenever the US dollar drops. Meanwhile the debt clock just crossed the $11 trillion, 900 billion mark, on its way to $12 trillion! Hmmm....

New Unemployment claims were below 600,000 again, this time at 576,000, a bit higher than last week. Also, four more banks were shut down by regulators, including Texas based Guaranty Bank, the second biggest bank failure for 2009 (list).

Commodities: Oil prices rallied to a new high for the year at just under $74 per barrel as the US dollar slumped, while Natural gas hit a seven-year low of below $3.00. Gold closed the week around $953, the US Dollar index dropped to around 78, and Bond prices were up for the week, then fell on Friday as the stock market continued to rally.


Next week we get a few more economic reports as we wind down the slow summer trading session.

Market analysis: This week the S&P500 broke out above the early August trading range (the 1000 area) to close at 1026 (see chart above). This could signal more upside momentum, even though the market is now trading at fairly lofty levels. If this uptrend continues, we could see the S&P500 rally back up to the 1100 level (the market was trading at this level last September around the time of the collapse of Lehman, AIG, and other large financial institutions).

...oops -just add another $2 trillion! White House Adds $2 Trillion to Deficit Forecasts

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Danger for the Dollar

Stock Market Update -Aug 16th

The market finally pulled back a little this week. The consumer confidence report on Friday, showing a lack of confidence, helped to push the market lower. We are seeing a lot of red on the sector chart for this week (see below), though we seem to be stuck in a trading range so far this month.

New Unemployment claims were below 600,000 again, this time at 558,000, still a big number. Also, five more banks were shut down by regulators, including Colonial, the biggest bank failure for 2009 (list).

Commodities: Oil prices fell to just under $68 per barrel (looks like that double top I mentioned last week might be playing out). Gold closed the week around $949, the US Dollar didn't change much for the week, and Bond prices rallied. Sugar hit a record high again.


Next week we get a few economic reports. Earnings season is pretty much winding down at this point.

Market analysis: This week we'll see if the market continues to stall out at this level, or if it regains some strength. Friday is options expiration day for August, so we could hang around these levels all week (1000 on the S&P500 and 2000 on the NASDAQ).

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Almost one-third of home loans are under water

BB&T Acquires Colonial as Regulators Close Five U.S. Lenders
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High Sugar Prices Have Food Producers Worried
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Stock Market Update -Aug 9th

This week the market was up again, boosted this time by a better than expected jobs report on Friday, which showed the unemployment rate dropping from 9.6% to 9.4%. The S&P500 closed solidly over the 1000 mark, and the Nasdaq closed right at the 2000 mark. The DOW closed at 9370. The bears continue to lose this battle!

New unemployment claims were below 600,000 again, this time at 550,000, and three more banks were shut down by regulators (list).

Commodities: Oil prices rallied to just over $71 per barrel (maybe we'll see a double top at this level as the US dollar tries to recover a bit). Gold closed the week around $955, while the US Dollar recovered some losses for the week, and Bond prices dropped. Sugar hit a record high.

As if we didn't have enough debt already (see the debt clock on the left), the Treasury Secretary now wants to raise the US credit limit again! Take a look at the debt clock again and you'll see why -about a million dollars is added every 10 seconds.


Next week there is a Fed meeting/announcement on Wednesday, along with some more earnings reports (including Walmart).

Market analysis: We continue to move higher, though we did see a pause mid-week. The financials also saw a strong rally over the past two weeks. It's anyones guess as to whether the rally will continue this week. It's a good level to take some profits and/or to protect your positions, since we have been up almost non-stop since early March.

Dow and S&P at new '09 highs
Goldman: Get ready for another commodity bull run
Job Losses Slow, Signaling Momentum for a Recovery
AIG, Fannie Mae and Freddie Mac Rise From the Dead
Fannie Mae to Tap $10.7 Billion in Treasury Capital
Inside G.E., a Little Bit of Enron

Mortgage Modifications Can't Catch Foreclosures
About Half Of U.S. Mortgages Seen Underwater By 2011
The Greenback Is Broken
Biggest companies: Shrinking giants
Clunker Cash Is Anything But Smart Money

Stock Market Update -Aug 2nd

The market was up again this week, helped by a better than expected GDP report, though sector performance was mixed (see chart below). Many are expecting a pause or pullback near this level, though the bears continue to be disappointed throughout this rally!

New unemployment claims fell below 600,000 again, this time at 584,000, and five more banks were shut down by regulators (list). -big Texas bank on verge of failure.

Commodities: Oil prices rallied further to just over $69 per barrel. Gold closed the week around $954, while the US Dollar was down to the low point for the year.

Bond prices were up for the week as the stock rally seemed to pause. The huge treasury auctions this past week were somewhat disappointing, possibly indicating less willingness to continue to loan hundreds of billions to the US.

Next week we get more earnings reports for the quarter, along with the all important monthly payroll and unemployment report on Friday. On a side note, Citi shares have been trading huge volume this week of over 1 billion shares daily!

Market analysis: The rally continues, though it could be starting to lose some steam. We closed out July with a very strong gain, the best performance in 20 years for the DOW. There is no clear direction for the week ahead, though my bias would be for a pullback. We saw a big drop in the Shanghai market this week, possibly indicating some more weakness ahead in the China market.

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