7 day market
weak unemployment concern
weak housing data in July
Challenging Q3 earning comps over prior year, and tough 2H
after 2 months of -16% decline caused by the Europe / Greek crisis, the NDAQ rebounded 9.5% in July. Both Dow and Nasdaq seem to have reach another turning point.
• HK shares rebounded 13% to 21.5K, just shy of last peak
• July rally driven by positive Q2 earnings and ease worries of European crisis
• Unemployment rate steady at 9.5%, many businesses are not hiring full time because they feel uncertain about the future demand
• Many hedge funds generated only 1% return in July while the market went up 9%. Bridgewater is up 20% YTD.
fear is coming back to the market. The picture in Europe and China are getting weaker. US is showing signs of slow down and weaknening
• Weak employment trend – the decline in unemployment rate from 9.7% to 9.5% is a result of 652,000 workers dropping out of the labor force, many of them weren’t counted as unemployed and looking for work. Growth prospect is weaker than expected. About 6.8 million have been out of work for 6 months. Some companies are looking to cut more jobs due to weak demand. The unemployed workers out in the market are willing to take jobs for half of what they were making before.
• Gov’t stimulus ran out. Unless there’s new stimulus package for 2H 2010, growth will likely to slow.
• No strength on the June market rebound. I should look to sell shares to cut loss and get cash back for another round of decline.
WTC attacked by terrorist.