Stocks rebounded last week but the major indices remained below their recent rally highs. The dollar continued to plunge while gold squeezed out yet another bull market high. Crude oil futures dabbled with the $50 level but closed slightly below.

Stocks continue to hold on to most of their recent gains, recouping most of the correction from the previous week. In the face of record high deficits, record low savings and a plunging dollar, the market isn’t doing all that bad. Corporate profits have almost assuredly already surpassed their peak, so what’s with all this strength?

(more…)

Stocks fell last week as the S&P 500 retreated from a new rally high to close sharply lower on Friday. The dollar bear continued as the Dollar Index plumbed depths not seen since late 1995 and gold rallied to yet another new bull market high. Crude oil rebounded late in the week but remains well below the $50 mark.

So what it is it? A bull or a bear? What’s going on? Seems that question is not as easy to answer as it used to be. The S&P 500 is into another upleg of the rally that began in 2002. But the Dow and the Nasdaq Composite have yet to exceed their corresponding highs. Meanwhile the small-cap Russell 2000 is at a new all-time high. A confusing and conflicted picture to be sure.

(more…)

In light of last week’s explosive stock market gains, it would seem rather spoil-sportish to harp on the factors which threaten to derail our progress. The election went off without a hitch, nobody bombed anything, etc. and the stock market was happy.

But regardless of how many negatives the market has ignored, the imbalances are creating an increasingly unstable situation with every passing month. Whether or not this will translate into stock market losses remains to be seen, but the informed investor should be aware of economic reality. It’s a bit like driving. The odds of having an accident are relatively slim, but that doesn’t mean that a driver shouldn’t remain alert to dangers on the road.

(more…)

Stocks surged higher last week as the S&P 500 took out its former rally high to post a new 2-1/2 year high. The dollar got hammered again, resulting in lows not seen in almost nine years for the Dollar Index. Gold broke out to a new bull market high while crude oil retreated to below $50.

Stocks displayed the kind of strength not seen in years last week in the wake of the Bush presidential victory. It seems that the “mini-bull market” is back in play. Or is it?

(more…)

Stocks rallied last week, rebounding sharply from multi-month lows. The dollar staged the proverbial “dead-cat bounce” as the Dollar Index popped up feebly after a test of the bear market low. Gold, consequently, flirted with its bull market high. And crude oil retreated from a record high to close lower for the week.

First off, let’s get this election ballyhoo out of the way. Like every election I can remember, this one is being heralded as “the most important election of our lifetimes.” But from the market’s perspective it’s just business as usual. Bush vs. Kerry. Are either of these clowns going to institute sweeping economic reforms that bring about some great economic/business miracle? No.

(more…)