3.27.09

3.27.09

            The Market continued its gains last week with a big up day on Monday, followed by three ho-hum days and ending the week by giving back about half of Mondays gains. Most of the analysts, ourselves included, have not seen enough to be convinced that is anything more than a relief rally from a very much oversold situation. This coming week could be the one that spells it out.

            The housing sector continues to face high levels of inventory, tight credit conditions, and the deleveraging of consumers. We need to see more improvement in that area. Once the housing market begins to show sign of improvement, it will help the whole economy and the stock market to get moving in the right direction. As conservative investors we must remain prudent and not jump at the first rebound until we get confirmation that the change is a real one and not just an oversold bounce. This coming week could hold some important clues, and could maybe, just maybe, give us a signal change.

            We will be watching and searching every nook and cranny to find the answers. Meanwhile, we are still staying 100% in cash.

Till next time

The MTA Staff