Monday, January 25, 2010
The markets came into this week in short term oversold condition but still weak. They were able to post mild rallies on Monday but really are still feeling their way through the markets here. This week is like a gauntlet of economic news with many big items still left for the market to navigate. It is like the Existing Home Sales yesterday and the Consumer Confidence number today were just the warm up acts. Wednesday brings us New Home Sales in the morning followed by the FOMC Statement in the afternoon. This is also a tentative vote scheduled for the Fed Chairman Nomination. Any surprises here would certainly throw the markets for a ride. Even after the FOMC Wednesday, there is more to follow with Unemployment Claims and Durable Goods on Thursday and an Advance GDP report on Friday.
This will be a lot of data being released that the market must deal with and can certainly create havoc in the markets. With the market in the midst of its most intense decline since the rally began in March 2009 it could lead to a volatile week in the markets and traders should be prepared.
Darrell Jones
DTI StockYard Editor-in-Chief