Dead Even
5th June 2009
The stock market finished the first week in June with a volatile day. It ended close enough for government work to the same place it ended the day before. In fact, looking at a chart you can see that the SP 500 is just about Dead Even with where it started the year. Speaking of the government, it was the release of the May unemployment numbers that caused the volatility in the market. We are still losing jobs at a clip of 1 million a quarter, but the news media keeps telling us that things are getting better. While that is better than the 2 million a quarter just that long ago, how do they consider that a good sign? 9.4% unemployment is not a good thing. The lack of progress by the market today indicates that I am not the only one questioning this rally.
And then there is increasing interest rates and climbing commodity prices. These do not normally go hand in hand with a streaking stock market.
If you are still riding this bounce, it it time to take some profits, and look for a better level to get back into the market.
JD
