I guess most people were watching the World Cup games, because it sure was a boring day for the stock market, which essentially closed flat today, and traded within a very narrow range. The S&P 500 formed an inside day, and it just looks like today's action was a pause in the current leg down. The market also may remain quiet this week until we start to get new info regarding the employment situation. ADP usually reports on the Wednesday ahead of the government report, then on Thursday we will have weekly jobless claims, and finally, the big number will come out on Friday.
I still see pretty much a consensus among economists that we will not have a double dip recession. Instead, they seem to suggest a slow rate of growth and limited job gains. Corporations are flush with cash, and this may buoy the market as they look for potential acquisitions and do some stock buy backs. Eventually, the consumer needs to feel better and start spending in order for bigger gains to occur in the market. Until the job situation improves, don't expect that to happen any time soon.
There were no big industry moves of note today. IDT joined my list of high momentum stocks to watch, as it broke out to new highs above $11 on heavy volume. Its CEO was on CNBC this morning talking about pulling oil out of shale with a technology they developed. He suggested there is more shale oil in the U.S. than oil in Saudi Arabia. Interesting.
Scott Cole
www.kungfutrader.com
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