Week 2 2011!
The first week of 2011 ended positively, like most first weeks of the year, with the Dow gaining 0.84% as investors and traders returned to the market.
Even though unemployment rate fell unexpectedly to 9.4% versus expectations of an increase to 9.7%, investors were less than pleased with the lower than expected gain in nonform payroll. However, there is now a clear trend in the jobless claims reports and the jobs report and that is the job market is recovering. As long as the trend continues, we can be assured of economic recovery and long term stock market strength.
On a short term basis, bullish momentum continues to fade in the market without the kind of enthusiasm that we would like to see in a bull market. Going by past market behavior, we continue to believe that we should see a significant retreat this month before the intermediate bull market has the next leg.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
Even though unemployment rate fell unexpectedly to 9.4% versus expectations of an increase to 9.7%, investors were less than pleased with the lower than expected gain in nonform payroll. However, there is now a clear trend in the jobless claims reports and the jobs report and that is the job market is recovering. As long as the trend continues, we can be assured of economic recovery and long term stock market strength.
On a short term basis, bullish momentum continues to fade in the market without the kind of enthusiasm that we would like to see in a bull market. Going by past market behavior, we continue to believe that we should see a significant retreat this month before the intermediate bull market has the next leg.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
posted by Jason Ng at 8:00 PM
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