Contact Us Disclosures Blog
Make an Appointment Contact Us Podcast Blog
Market Commentary Audio Archives Book Shelf InvestAbility Center

Where to From Here

July 9, 2010 – 5:12 pm

Earnings season officially kicks off next week with Alcoa reporting after hours on Monday; however investors and traders will not be focused on the actual numbers that are going to be reported. Instead they will be looking for signs to confirm or deny the possibility of a double dip recession.

Already built into stock prices is an economic slow down as worry over Europe, the oil spill and weakening economic growth numbers have put downward pressure on stock prices for the last two weeks in July. The past few days of a relief rally will either lose momentum fast or push forward with a more durable rally. That change will depend on this earnings season.

With the CEO’s projections as well as more economic data the story will unfold in July. I believe in the slow down of our economy but not in the double dip. With a slow down the market is very under priced and by year end we should have a strong rally. With a double dip it won’t matter if stock prices are cheap; they still will fall further. Meanwhile, we are in the summer of uncertainty.

Good Trading
Steve Peasley

Post a Comment