December 28, 2007
If today’s market action (assuming you were paying attention) made you yawn, you weren’t alone. After opening strong, on the belief that the market sell-off over the assassination of Bhutto was overdone, the market quickly gave up those gains to a weak New Homes Sales Report. We were correct in assuming that the market would quickly rebound, however, we did not anticipate the sell-off of the housing news. But that is what makes the market so challenging, just when you think you have a plan in place, as to how you should take on the market, you have to be flexible enough to adjust to its ever-changing personality.
At this time of the year, when most of your major institutions are looking towards the new year, to take anything from this week is very difficult. Come next week, market activity will be back to normal and much will be said for the first few days of the New Year. As for next week’s schedule, the market will be open for normal business hours on Monday, Wednesday, Thursday, and Friday, but closed on Tuesday for New Years Day. Because of today’s weak holiday volume, and the little fluctuation in the major index’s closing prices, we will withhold posting new charts for today.