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Where’s the Information?

December 20, 2010 – 5:57 pm

This week will be a holiday shortened trading week and almost all the economic statistics will come out on Thursday. There will be a final revision of the third quarter GDP on Wednesday and an existing home sales report but little else until Thursday. The market will be on its own until then, reacting to news events out of North Korea, China, Europe and here in the U.S. but it won’t be as a result of economic numbers from the U.S.

Oil is clawing higher and it is likely to reach $100 per barrel and higher next year. All commodities are likely to go higher in 2011 simply because the U.S. economy will gain strength. Add that pressure to a strong Asian growth story, and the inability to increase commodity supply quickly, means increasing prices with a lot of volatility.

The holiday weeks, this week and next, are usually positive but with the market being overbought it is hard to gauge the short term action, so why try.
Good stocks should be held and weak stocks with weak earnings growth prospects should be sold.

Good Trading
Steve Peasley

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