Weekly Review (6/5/06 – 6/9/06)

Will it be Stable?

The market closed out another ugly week following some bleak comments from Fed Chief Ben Bernanke on Monday. The Dow ended below the 10,900 level since February 13, and shed 3.2 percent for this week. The SP lost 2.8 percent and the Nasdaq Composite lost nearly four percent on the week.

We saw the buying powers straggled to push the market up a few times. Unfortunately they were too weak. At the end, the market kept its down trend stable.

Peoples are almost sure that the Fed will increase the interest rate at the coming meeting. The oversea markets collapsed during this week also… All the cloudy news shadowed the market. Most of the technical data point to the negative direction also.

No doubt, the market will be jitter in next week, but I hope the market will find some supports and stabilize itself.

I have to say that some stocks are over sold. You should start to look for the cheap ones. To play save, because the down trend is not over yet, you should not take big action. For long term investor, I suggest you stay away from the market for now; for short term player, I think it is a good period to get involved. Please keep an eye on the small bounces.