UPDATE 3.30.07
Stocks were unable to bolster their gains of last week and instead moved lower. The concerns over Iran caused a spike in oil prices to over $66 a barrel. Stocks finished the week and the first quarter with a slight down day. For next week we expect somewhat of a wait and see attitude in the market as first quarter results start to be announced. Word is that it will be a difficult feat for many companies to beat year ago results. We will more than likely keep the PPP in place for a while waiting for a clear cut signal.
For the week, the Nasdaq 100,
Russell 2000,
and S&P 500
respectively lost 1.21%, 1.09% and 1.06%. Both the S&P 500 and the Russell 2000 remain above their respective 50-day and 200-day exponential moving averages (EMAs). The Nasdaq 100, it has now crossed below its 50-day EMA, but remains above its 200-day EMA.
This was the end of the first quarter, and we always expect portfolio "window dressing" to take place at these times. Mutual Funds and other money managers like to get rid of stocks that have not performed well so that they don't have to show them on their list of "holdings" when the make their quarterly report. They also like to buy stocks that have done well for the same reason.
Till next week,
The MTA staff
