Monday, August 14, 2006

Weekly Review (8/7/06-8/11/06)

Hold Your Fire!

The market languished in negative territory last week. The Dow closed the week back 1.36 percent from the previous week. The S&P shed almost one percent. The Nasdaq tumbled 1.31 percent on the week. The market was very volatile during last week.

After the Fed decided to halt the rate increasing, the investors started to fear that the Fed may be forced to lift rates yet again. Somehow I feel the stock market of this year is just like a Fed game. Because this game is not “officially” over yet, the future of our market is not clear.

The cease-fire in Middle East is good news apparently. It might reduce the tension on the oil market. But there are questions about it. How can people assure it will be permanent, and not another political trick, nor a break of military action? Would Israel accept its incomplete mission and allow Hezbollah to claim their “victory”? I think the investors have to watch it.

The cease-fire is too weak and might be broken at anytime. It is a dangerous factor to our stock market still. Other “little” news, such as US security concern, or government reports that will be released during this week, will influence the market also. Therefore, any serous market up or down will be short lived most likely.

I still insist to my readers to be patient. I expect the buying time will come soon, but now.



0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home