US stocks had a slight pullback on Friday after the large
gain in stock prices on Thursday. Fridays trading action
does not mean anything as far as direction or trend and
markets usually have a slight pullback after such big
gains as we saw on Thursday. The fact that the indexes
had small pullbacks on Friday should be considered a
bullish sign. Overall, as a general trend, we are still
expecting an uptrend to continue for longer periods of
time and may continue through 2011.
The next area of worry for the US markets is the
November 23
rd
deadline on the “super committee” of
Republicans and democrats to come up with a plan that
solves our own deficit reduction program. Remember
the government shutdown the US almost had? Expect
more heated bickering and extended deadlines and this
could derail the current bull run we are having now.
Also remember the US faces a second downgrade by
Standard & Poors rating organization (S&P) if we don’t
have a credible debt reduction plan in place and signed
into law. This is another factor that could cause selling
in US stocks.
The October 4
th
bottom was the most recent bottom in
stocks and the 3 week bull run we have had since is the
longest we have had for quite some time and it is likely
we return back to shorter term holding times in swing
trades long or short.
The Dow30, Nasdaq Composite, and the S&P 500 all had
virtually no change. The Russell 2000 was down 0.58% and
the CBOE Volatility Index which is a gauge used to measure
fear in the market place was down 3.6%
In economic news, Personal Income was up 0.1% in September which was less than expected. Consumer Spending was
up by 0.6% which was in line with expectations. Also the Michigan Sentiment came in much higher than anticipated at 60.9
for October.
In earnings news, MRK, Merck was up 2.3% Friday after reporting earnings that beat expectations. CVX, Chevron also had
better than expected earnings but share closed with virtually no change.
CVC, Cablevision Systems was down 11.5% Friday after announcing weak earnings that included a sharp drop in third
quarter income and a loss of cable television subscribers.
gain in stock prices on Thursday. Fridays trading action
does not mean anything as far as direction or trend and
markets usually have a slight pullback after such big
gains as we saw on Thursday. The fact that the indexes
had small pullbacks on Friday should be considered a
bullish sign. Overall, as a general trend, we are still
expecting an uptrend to continue for longer periods of
time and may continue through 2011.
The next area of worry for the US markets is the
November 23
rd
deadline on the “super committee” of
Republicans and democrats to come up with a plan that
solves our own deficit reduction program. Remember
the government shutdown the US almost had? Expect
more heated bickering and extended deadlines and this
could derail the current bull run we are having now.
Also remember the US faces a second downgrade by
Standard & Poors rating organization (S&P) if we don’t
have a credible debt reduction plan in place and signed
into law. This is another factor that could cause selling
in US stocks.
The October 4
th
bottom was the most recent bottom in
stocks and the 3 week bull run we have had since is the
longest we have had for quite some time and it is likely
we return back to shorter term holding times in swing
trades long or short.
The Dow30, Nasdaq Composite, and the S&P 500 all had
virtually no change. The Russell 2000 was down 0.58% and
the CBOE Volatility Index which is a gauge used to measure
fear in the market place was down 3.6%
In economic news, Personal Income was up 0.1% in September which was less than expected. Consumer Spending was
up by 0.6% which was in line with expectations. Also the Michigan Sentiment came in much higher than anticipated at 60.9
for October.
In earnings news, MRK, Merck was up 2.3% Friday after reporting earnings that beat expectations. CVX, Chevron also had
better than expected earnings but share closed with virtually no change.
CVC, Cablevision Systems was down 11.5% Friday after announcing weak earnings that included a sharp drop in third
quarter income and a loss of cable television subscribers.
