Debt, Debt, & More Debt!
Monday, July 11, 2011
Stock Market Commentary:
Stocks were under pressure on Monday as fresh debt woes surfaced from the U.S. and Europe. However, it is encouraging to see that all the major averages remain above their respective 50 DMA lines and many leaders are still acting well considering Friday’s lousy jobs report and fresh debt woes from Italy. The next level of resistance is their respective 2011 highs.
Debt, Debt, & More Debt!
Over the weekend, fresh debt concerns surfaced from the U.S. and Europe which put pressure on stocks and a slew of commodities. In the U.S., the latest debt/deficit talks dragged on as members of both sides of the aisle failed to agree on much needed restructuring. In Europe, an emergency session was held to discuss Italy’s mounting debt woes.
From our point of view, what is happening now in the Western World is a slow but potentially fatal shift of power. History shows us that power tends to follow wealth and what is happening now is that wealth is slowly shifting from the West to the East. Hopefully, Western politicians are aware of this simple yet often overlooked fact and will due what is necessary to curb their outrageous spending and get back on the right track.
Market Outlook- Uptrend Under Pressure:
The last week of June’s strong action suggests the market is back in a confirmed rally. As our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the current rally is under pressure as investors patiently await earnings season. Until then, the market deserves the bullish benefit of the doubt. If you are looking for specific help navigating this market, please contact us for more information.
