Friday, March 27, 2009

Friday Thoughts

Quite a week. The markets have seen continued strength across almost all sectors. I'm seeing plenty of positive signs on the technical side of things. I've been a little cautious due to the fact that prior to today, there was really no pause, but rather a straight up rally. Obviously there are people interesting in buying stocks, and that's a good thing.

Look at how the market is responding to news, and especially bad news. The market is disregarding bad news. This to me is a major turning point. Just a couple of weeks ago any piece of news was feared because we knew the market reaction would be negative.

On the economic front, there isn't really any sign of improvement. At some point, this will hold back how far the market can advance. Its is likely to set in over the summer, but could happen at any point. We still have some major issues coming up (credit card losses, commercial real estate, more employment trouble) that not many have been addressing. Up until now, the government has been largely focused on the banks and credit markets.

This type of market is a little difficult for me because I typically don't spend much time on technical analysis. This market is all about trading and the technical side of the market. Fundamentals are kind of out the window until we get a clearer economic picture.

In a general sense, its nice to see a pull back today. I doubt many investors want to hold positions over the weekend, given the likelihood of more government intervention or something of the like.

Hopefully you all had a profitable week!

No comments: