StockOperator,
The economic reports were quite good, and right after it was announced the futures wer up very strong, then went down and up.
Im not an economist, but I feel that the report was very good. There was no sign of inflation in the report, and the economy is very good.
If the report was so good, then why isnt the DOW up 200-300 points?
My thoughts are that the GREENSPAN EFFECT has put a cap on the market
until the FOMC meets on MAY 18 or in AUG. For the short-term(1-5 days), I just dont see a huge rise or a huge decline, but more of a trading range.
With earnings out of the way, and the market cant even respond positively to good economic news, what else can motivate the market alot higher, not just a little higher. If the KOSOVO situation is resoloved, we may see some sort of an upswing, but should not be huge since when the KOSOVO situation first started there really was no selloff.
I am sensing that we may be heading into a phase where the slightest
bed news will be exagerrated to the downside, and good news may be minimized. A reversal of the JAN-APRIL period, where with the slightest good news a stock was up 5-10 points, and if it was an INTERNET it was up 25-50 points. Those strong upswings are simply dissapating.
seeya |
