Weekly Review (6/12/06 – 6/16/06)

Be Careful

The market was slightly down this week. The Dow decreased 25.46 or 0.23 percent; the Nasdaq fell 8.48 or 0.24 percent; the SP lost 7.04 or 0.56 percent.

If we checked the individual stocks, we can see some of them showed stable and seem on the way to bounce. The technical pictures are getting better now. We should target those stocks first when the overall market on returning.

I am hesitated to provide a prediction for next week because the conflict on the conclusion.

One hand, the market seems has digested the Fed rate raising and all the bad news have played a role in the market. “When the bad news run out, then it is the good news.” The market has been suffered by that news and is at the bottom technically. Another two strong reasons for the market to bounce are: Next week is the last week of the quarter; the earning season is coming. Those reasons point to one direction that the market will up after the Fed meeting.

On another hand, from my own analysis, I can see the market is going down after the Fed meeting. Thursday will be a bad day.

Anyway, for short term players, the next week will be good time still; for others, just keep my result in mind in case it happening.

I will be on vocation for a couple of weeks. I will keep an eye on the market and do my best to keep this blog alive. I probably will not update it often.

Good luck to you!