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Where now?

September 28, 2009 – 9:05 am

The market had already decided to rally this morning before the one and only economic report was released for today. That report was the September Consumer Confidence which was estimated to be up to 57 from a reading in August of 54.1. The actual number came in at 73.5. That pushed the market higher.

How high is high? Was last week’s small pull back, which has been typical since March 9th, all the pullback we are going to see? A fall of 2 to 3% in the indexes can not be considered a true pullback. A 7 to 10% is much more in line with what generally happens, and we had one of that size in June. When you consider that September and at least the first part of October are the weakest months of the year most market pundits have been waiting to buy that pullback.

When too many people expect something to happen it usually doesn’t. Still the prudent investor has at least some cash to buy on any pullback in this kind of market. Is the market going higher? I assure you that it is. I just can’t make that assurance as to when and how much. That would be crystal ball gazing.

Good Trading

Steve Peasley

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