Monday, June 9, 2014

Market Direction Week of June 8, 2014



The S&P 500 index on Friday rallied to a new record high and closed higher. Bullish factors included (1) the +217,000 increase in U.S. May non-farm payrolls, slightly more than expectations of +215,000, (2) the unchanged May unemployment rate at a 5-1/2 year low of 6.3%, better than expectations of +0.1 to 6.4%.

The markets this week will focus mainly on the battle in Washington over the CR and debt ceiling. The markets are hoping for a debt ceiling increase before Thursday, which is the date on which the Treasury has said it will hit the debt ceiling and will only have about $30 billion left in cash. The CBO has said that the Treasury could start missing payments.

Economic Calendar: Jobless Claims (6/12), Retail Sales (6/13), Producer Prices (6/13)

Some of the major earnings announcements on deck: MCD, NFLX, PLCM.

$tockMarketDirection is in a BEARISH  posture. The most recent action in the stock market is suggesting the market direction could change. We strongly encourage our many bloggers/followers to monitor positions closely, exercise proper money management strategies and to monitor $tockMarketDirection for ALERTS that we may issue advising of a change in our current posture. Cha-ching.

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