Hopefully you had a wonderful long weekend, but now it’s back to work!
So, we just concluded one of the WORST quarters (if you’re a bull, otherwise, strike that – reverse it…) in stock market history. The follow-on? More of the same? Perhaps. However, the last three days of trading last week – though still bearish – seemed to show (to me at least) that a near term low is at hand.
It makes sense, we’ve been very bearish for some time. The Dow is below 10,000, the S&P 500 is very near the 1,000 mark and the NASDAQ… well, need I say more?
We all know that stocks do not trend in a straight line and even LeBron James needs a break now and then. So, with little economic news and even less market shaping earnings this week, I suspect that we may get a short-term bounce. A “relief” if you will. The big question is – will it last. My answer – like my answer to so many other things is – it depends. There are some signs of things improving within the European Union, there are some signs that the Chinese are more willing to take part in a global effort to bring health back to the worlds economies, and earnings are just around the corner. However, the bigger picture is still troublesome.
I suspect that this week will be one for the bulls, but unless we start to see some improvements in the core fundamentals of the world’s economies – we still need to stay very cautious.