Sunday, June 24, 2007

The Week ahead

The week ahead in the capital markets will be testing. Here is an economic calendar for the week ahead. Below are the important pieces of economic data that I will be looking out for.

  • Existing Home sales on Monday
  • Consumer confidence and New Home sales on Tuesday
  • Durable goods on Wednesday
  • GDP and Federal Open Market Committee announcement on Thursday
  • Personal Income and Outlays, NAPM Chicago, Construction spending and Consumer sentiment on Friday

As one can see, there will be an overload of data being thrown our way and how the market reacts will be key. The Dow, the Nasdaq and the S&P 500 are all at critical junctures and anything can happen. We could break support levels especially on the S&P 500 at 1490 and face a substantial drop. For now while the bull market is still intact there are subtle signs of the equity market wearing itself down. Volume on down days has been high, financials and especially banking have been breaking down and the powerful utility sector is tumbling. Not to mention oil prices breaking out to near $70.

As a side note, the ability to watch DVD movies on your computer courtesy of Netflix is going to boost the company tremendously. At a buck away from 52 week lows, NFLX is a good buy especially when you also take into account rumors of a potential buyout by Amazon.

I am also keeping a close eye on Google. The stock is breaking to all time highs and I think GOOG $600 could be on the scorecard pretty soon as long as the overall markets hold up. The release of the iPhone and the movement of Apples stock AAPL will be another item to watch.

The breakout in the Semiconductors and momentum in names like SNDK MU MXIM TXN NVDA as well as SMH and USD will require a close watch.

The movement of the US dollar, the Yen , the Euro and Gold and Silver will be of special interest to me. Long Gold, Silver and the Euro.

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