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The Future

July 8, 2009 – 11:09 am

Despite this morning’s small move up we are in a modest correction as oil falls for the sixth day in a row. Oil prices falling is not a bad thing for the economy but the reason it’s falling is that traders see a slower recovery in the world economy.

However, yesterday the experts stated that oil demand worldwide next year will rise but not in the U.S. That means Asia is where demand is coming from. Also, the IMF reported that this year global growth is still very weak but it increased its growth projections for 2010 to 2.5% from 1.9%. Again, that might be because of Asia.

I think the IMF report gave some hope for traders this morning though the move up is not very robust. Earnings will tell the story for this market in the short run. It would not be unusual to see a correction. However, it would be one to take advantage of, not one to be frightened of.

Good Trading
Steve Peasley

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