Stock Market Week in Review

A divergence still exists whereby the Dow and Nasdaq have exceeded their early May highs while the S&P is still lower. There is still reason to be optimistic that the Dow and Nasdaq will pull the S&P up so that they will all be at the highest level during the previous twelve months. But stock market sector analysis suggests trouble on the horizon: transportation lost an amazing 6.1 %, consumer durables and capital goods both lost more than 3% and even semiconductors dropped.  Optimism stems from an increase (3%) for technology hardware with smaller gains for telecommunications and computer software.

Underlying all of this is the 6.2% jump in relative strength for energy. In constant 2010 dollars, gasoline has been between $2 and $4 since the 1920’s. But previous periods when gasoline was at the $4 level coincided with poor economic times: the 1930’s and 1980. It is high gasoline prices that must be hurting the transportation sector.

Put in your name and email for our
free weekly stock newsletter

You'll get:

* Weekly Emailed Stock Market Analysis

* Trading Educational Tips - once or twice a week

email

name 

  • Every trader, no matter how good, has losses.

     

    The only ones that don’t are Ponzi schemes.

  • What kind of results will I get?

     

    You’ll get more wins than losses and average gains bigger than losses.

  • But, you need more than just good trades!

     

    Too much risk leads to disastrous losses.

    Geometrically increase your results with the correct use of risk.

  • How do I get started?

     

    Click subscribe (on the menu) and make a selection.

    Submit and you’re set to go once you receive a return email.