The stock market is growing, but on weak economic data

Quo vadis? The [tag]stock market[/tag] has been growing since December 8th, 2008 in a modest pace in spite of bad [tag]economic[/tag] data. Are we really at the bottom of this [tag]crisis[/tag]? [tag]Economists[/tag] say, the [tag]crisis is over[/tag], [tag]stock markets[/tag] are bottoming or turning back up, some [tag]stocks[/tag] are forming their [tag]pattern[/tag]s, but is it really over? Is it time to start moving [tag]money[/tag] back to our [tag]investing[/tag] accounts and get ready for new [tag]uptrend[/tag]? Economic data from December 2008 were surprisingly lower than expected, [tag]unemployment[/tag] claims worse than predicted. Some say we are heading to another [tag]financial[/tag] bubble, which will be even worse than all previous (www.weltonline.de) ones.

When taking look at the stock market [tag]chart[/tag], particularly [tag]Dow Jones[/tag], we can see its [tag]modest growth[/tag]. Both indicators – 21 day MA and 50 day MA are turning up. Even though we still can read in newspapers about bad economic data, unemployment rate is at 16-yr high (7.2%), some say that the crisis will continue well in 2009 year and some say that we are ahead another [tag]crisis[/tag], deeper than this one – treasury bonds crisis, the [tag]trend[/tag] holds up.

Dow Jones

When looking at the chart, the market is still holding its uptrend, mediocre one, but still going up in general. Last couple declines could be just a reaction to bad news or it can be a sign of the end of the [tag]rally attempt[/tag]. Let’s see what would happen in upcoming week.

Tip: It is not time to [tag]start investing[/tag] yet. Wait for the [tag]market[/tag] to confirm itself. This rally attempt can still fail next week. I would stay out of the market, watch potential [tag]winning stocks[/tag], add them to a watch list and wait. There always will be plenty of opportunities to [tag]buy winning stocks[/tag] when the rally confirms itself.

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3 responses to “The stock market is growing, but on weak economic data”

  1. Remmy says:

    This market is a joke. I am looking forward to its burst. Stocks are poised to fall!

  2. at the money opitons says:

    I’ve never given this a try, but I think it’s about time I do.

  3. Dow Stock Market says:

    My information about dow stock market get completed after reading this very useful and informative post .

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