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Outstanding Issues

February 6, 2012 – 5:23 pm

The Greek debt issue is starting to heat up as an agreement is still not in place. The Greek government has not passed the required belt tightening measures which is needed to obtain another round of bail out money.

We have had better news regarding not only our economy in the U.S. but also the economy of Europe in recent weeks. That has been supportive of stock prices as the three major stock indexes approach or slightly break above long term resistance levels. These are levels that need to be broken with some conviction to start the next leg of the rally. This may well not be easy.

If Greece and the other weak countries in Europe do not face up to their debt issues and the IMF, ECB and the rest of the leaders do not continue to take further steps to stabilize their economies, we will have a sharp downturn in our market. Otherwise a normal correction is in order.

Since our economy looks to be gaining strength the fundamentals are in place to hold up the stock market. As earnings season comes to a close investors and traders will be turning their attention away from the U.S. and toward world economy issues.

Good Trading
Steve Peasley

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