Stock Market Analysis

Tuesday, April 10, 2007

Stock Market Continue To Crawl Ahead of FOMC

It is incredible to see so many analysts and news reports screaming 8 days of continuous gain in the Dow at the top of their voices when the last 2 days have been merely sideways days. In fact, the last 2 trading days have been as good as extensions of the Good Friday long weekend. The truth is, the "8" days of gains are only as good as 6 days of gains and such straight gains usually doesn't lead on too well. Investors are still eagerly waiting for the effects of tomorrow's FOMC release and the performance of companies in this new round of earnings. AA kicked off the earnings season well as it out-performs analyst estimates and went up more than 2% in after hours trading. Tomorrow shall be judgement day. Seriously, I will not be surprised to see the market go down tomorrow no matter what the outcome may be with the Fed or earnings releases, but I will be concerned about how strong that decline is and how much public support is behind that decline. If I see a weak decline or a gain, then perhaps better days are indeed coming. If I see a strong decline, then we are all back to square one.

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