Easter Bunny Bounce

  This holiday-shortened week saw a relief rally that began on Monday and carried through until Thursday. The markets still have further to go in the coming week before we once again reach the top of this four month long trading range. 

  As spring finally arrives throughout the country, you would think the stock market would celebrate, but not this year. The indexes were slammed again this week and we can expect more of the same in the months ahead.

A crowded trade

  Just about everyone on Wall Street has jumped aboard the band wagon by now. Sure there are some that still think the market can go higher but the vast majority of investors are now expecting a major pullback. Welcome to what’s called a crowded trade.

The Faint of Heart

  It has been at best a bumpy ride for stocks this week. While events in Crimea are partially responsible, there are some underlying factors just below the surface that may have more to do with recent performance than would meet the eye.

As April approaches and the markets remain near record highs, it is time to take a look at the mid-term election cycle. Since 1950, it has signaled turbulence for the stock markets.

Hanging in there

Russia’s attempted annexation of the Ukraine, China’s internal economic woes, the less than auspicious enrollment numbers in Obama’s health care initiative are just a few of the difficulties that the stock market has had to overcome this week. Given the news, stocks are hanging in there.

  It is official. We made a new high this week and the markets appeared to be in “melt-up” mode. So why is everyone cautious?

Interest rates have been on a downward path for almost thirty years. In May of last year, thanks to the Fed’s taper talk, that direction has reversed. This week it was revealed that some Fed officials are actually discussing when to hike interest rates. 

Just about there

What a difference one week makes. All the concerns that were ostensibly responsible for the stock market’s 7% decline in January have already been forgotten. It appears investors are bound and determined to push the markets back to the highs.

The markets have weathered the recent storm of selling and have sprung back fairly quickly this week. There may still be a squall or two ahead, but it appears the worst is over for now.