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Up, Up and Almost Away

March 30, 2011 – 6:25 pm

As the job figures released by ADP showed continuing strength in the job market, the major indices’ attempt to break through resistance levels that were carved out earlier this year. Despite the global problems, particularly in Japan and Libya, the domestic market continues to focus on our economic recovery that continues to progress, albeit at a modest pace.

Merger activity has also boosted optimism that equity prices are still relatively attractive and that companies have enough confidence in their future to spend money to grow, either through acquisitions or internal investment. These factors are important to get money back moving in our economy and for earnings to progress higher.

True jobs figures are set to be released on Friday which will undoubtedly be a market mover and will likely be the catalyst to either allow resistance to push the market back into a trading range, or to allow enough momentum for the markets to progress on to newfound heights since the financial collapse in 2008. It could all be for naught however as earnings season looms large around the corner and earnings growth must slow at some point, at which time the market might take a breather to digest a slower earnings recovery phase.

Be aware that momentum still remains positive despite the news headlines and rhetoric that push worry into the minds of many. Keep a broad view of the market and avoid myopia.
Good Trading

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