So what do you think? Tepid buying before Rita. The storm came and is almost gone and the census seems to be 'not so bad' (this could change) With oil dropping some 5-7% the markets 'rallied' into Friday. Now do we sell after? Nothing has changed and the repercussions of Katrina are just now starting to roll in... However we are headed for the end of the quarter. Lots of themes, which one wins? and why?
Earnings⦠â¦the only solid fundaments for the market to break out of this range. Can I have my million now, please?
Ah... earnings of WHAT industries... break us out? Everytime the market look ready to drop, OIL rockets up hence the energy companies keep the indexes above water. I think the way we break out is with Oil dropping AND bad earnings.
Buy the news on Rita? The market gyrates; it moves in gyrations so beyond the temporary and minor distortions news might bring you are going to be disappointed. A neutral mind is required for each days offering of points (ie Dow).
PS: earnings is what drives the market and what has sustained the market so far. It would be easy if I knew how good earnings will be in the future, nevertheless they still are responsible for valuation and direction, giving me a good idea where we might heading.
wait a second ... if the oil price continues dropping into the winter .... won't energy sector companies also start to fall in price somewhat ... and are not they the reason the SP500 is up this year ?
Because the market originally discounted a devastating Cat 5 storm that did not materialize, there bound to be a bounce. The extent of the bounce will depend on other near-term news events, most notably - earnings warnings.