Courtesy of David Brown, Chief Market Strategist, Sabrient
Market Roars Ahead, So What Should We Worry About
By David Brown, Chief Market Strategist, Sabrient Systems
The worst Thanksgiving week for the market since 1942! Shoppers went wild over the weekend. Market’s up strong today. Europe’s gasping for breath. No words I could write would put this situation in better perspective than Daniel Skolnick, my fellow author at Sabrient, did in his piece yesterday. Daniel writes a weekly article called the ETF periscope. Here is his piece from 11/27/11:
If Wall Street has any chance of finishing 2011 in the black, it had better make a major move this coming week.
Not only is time running out before the New Year’s mirrored ball drops over Times Square, December storm clouds appear to be blowing hard in from across the Atlantic, courtesy of the EU, that could make the likelihood of a winning year a long-shot bet.
Last week’s market action continued Wall Street’s most recent slide into the red, as all four sessions of the holiday-shortened week succumbed to Bearish tendencies for the major indexes.
For the Dow Jones Industrial Average (DJIA), that makes six losers over the course of the last seven sessions. The Dow has lost 7% of its value over this period, dropping close to 900 points. It now sits over 2% below its 50-day moving average.
Perhaps of greater significance, the S&P 500 Index (SPX) has fared even worse, losing the last seven days the market has been open for business. During this same time frame, the SPX shed close to 100 points, shaving 8% off its value. It, too, ended Friday below its 50-day MA, posing a strong technical degree of resistance that could contribute to keeping the benchmark index from achieving an annual victory.
As of last Friday, the Dow was down 4.8% for the week, off 3% for the year. The SPX was down over 4.5% on the week, and just under 8% for the year. Also down was the Nasdaq Composite Index (COMP), falling just over 5% as of Friday, which put it in the red by about 8% on the year to date.
However, it’s possible Wall Street might be able to catch some wind in its sails from a combination of positive numbers out of the retail sector and the next round of economic data out
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