7.04.08

7.04.08

You know it’s a difficult market when the market moves up on what would normally be viewed as bad news, sales down only 18% for General Motors instead of the 25% that analysts were expecting. It was less disappointing so the turned around and instead of a bad day, the market showed a slight gain for the day on Tuesday. It, of course, didn’t last long as Wednesday took the price of oil to heart and the SP500 gave up 1.8% on the day. Oil is the controlling factor in this market and will continue to be until something happens to bring the price down. That won’t happen until the dollar can gain ground on the Euro or our government does something to increase the margin requirements on Oil Future Contracts. That would help in a big way, right away. Most of the other things that are being talked about would take years to kick in. We need something NOW.

             For the week, the Nasdaq 100, Russell 2000 and S&P 500 respectively lost 2.23%, 4.59% and 0.96%. All 3 are still below both their 50-day and 200-day exponential moving averages. 

Next week is a light week for economic reports. Few, if any are potential market movers. But second quarter earnings reports will begin coming out, and many of those may be potential market-movers in one direction or the other.

             We are still 100% in CASH in our Conservative Accounts.

 For those of you who are short in your Aggressive accounts, it is still a good place to be, but we are overdue for a bounce back before it continues down.

Till next time

MTA Staff