Market Sputters Late, Jobless Claims Loom
May 15th, 2009 | By Rob | Category: Trade StrategyThe appetite of new entrants tip toeing into U.S. equities seems to have worn thin. Following three straight days of declines in the S&P 500 and founded on data citing 38,000 additional weekly jobless claims (637,000 wk 5/9), equities moved slightly higher. The S&P 500 improved by 9 points to 893, drawing bulls to declare victory for the day. It seems that fundamentals do have a place in equity valuation as the unemployment numbers managed to bring banks and equities across the board back off their daily gains.
S&P 500 losses for three consecutive days haven't been felt since early march. It would be wise to wait for Friday to make claims about the direction of Equities moving forward. If the S&P 500 closes down greater than 2% on Friday, be prepared for a sharper correction downward. All that's keeping markets afloat are "value guys" jumping the gun.
***SKF, DXD, SCC are three leveraged short ETFs that will benefit most from a pullback***
More on this topic
(What's this?)
S&P Caught Between A Rock And A Hard Place
(The Wild Investor, 5/13/09)
Proceed With Caution
(Contrarian Profits, 5/11/09)
Economist Gary Shilling: S&P 500 will drop 43% this year?
(Value Investing, 4/11/12)
Thank you for writing such an appealing post. Normall I see the same thing and it starts to get on my nearves. Thanks again and I’ll be back for more.