Friday, April 24, 2009

The Streak Is Over ... Sort Of

Stocks posted gains today, but they weren't enough to offset recent losses for the Dow and S&P 500, bringing their six–week streaks of gains to an end. But the Nasdaq finished the week higher for the seventh straight week so its streak goes on.

As Barack Obama has been saying for quite awhile now, investors can expect fluctuations until economic fortunes are reversed.

And I've heard many stock market observers say that, in a bear market, mini rallies happen but, at some point, the markets hit the wall. Is that what happened to the Dow and S&P 500 this week? They only finished slightly lower this week. Is it possible they could have another positive week next week?

Seems possible to me, but I'm not an economist. I'm just a guy who hopes — like everyone else — that this recession will soon come to an end.

"[S]ome market pros are worried the run higher has been too much, too fast," writes Alexandra Twin for CNNMoney.com. " 'We have a market that after a six–week rally was vulnerable to a pullback, sold off 4% or 5% and is now looking to move higher again,' said Steven Goldman, market strategist at Weeden & Co."

Will the Nasdaq take a tumble next week? It's a possibility.

In this economy, anything can happen.

3 comments:

Mike said...

I don't know? It seems like home sales are picking up a little bit around here, and the panic seems to be wearing off! I am optomistic!

David Goodloe said...

I hope you're right.

Alice Patterson said...

How did that slogan go?
"We have nothing to fear but fear itself". I'm positive as well.