5.11.07

5.11.07

The markets just sat around and waited for the Fed announcement that was due out on Wednesday afternoon. When it turned out to be a non-event as we had predicted, the markets moved up and closed out the first three days of the week with a decent gain. Then on Thursday selling took over and the averages gave up about 1.4% across the board for the first time in weeks. Disappointing same store sales were the culprit. It was to be expected, and it could have been the start of a change in the mood of the markets. However the “Bull” is still alive and well as proven on Friday when it regained most of the previous day’s losses. This is a very strong market and the trend is still up and it’s going to continue to give some handsome gains going forward. Somewhere, someday the mood will change, but for now let’s enjoy the ride up. We are currently in the SP500 at a 100 beta.  

For the week, the Nasdaq 100 gained 0.16% while the S&P 500 was virtually unchanged. The Russell 2000 and the Comp were underperformers and lost a small amount. Oil closed out the week at $62 and change. Gas is still trying to go up more and it should be topping out soon. If not, it could hurt the economy and change the profit picture of a lot of companies. This is the wild card in economic deck.

Till next week

The MTA staff