Lombardi: Expert Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986
Stock Market Commentary & Forecasts, Financial & Economic Analysis

Welcome to Profit Confidential • Monday, May 21, 2012

November’s Looking Good

Wednesday, November 23rd, 2005
By George Leong, B.Comm. for Profit Confidential

Hats off to November, so far! October saw a decline in market momentum, but the markets’ ability to hold has been encouraging. Now, with only six weeks to go before we bid 2005 goodbye, stocks appear to have regained some renewed momentum on a more upbeat view towards stocks.

 But, is it a bear market rally? The reality is that trading volume has not supported the rally. When you see declining or flat volume on an uptrending market, you need to question its sustainability.

 In November, market sentiment has reversed, and it is now far better than it was in October, as we’ve seen in the underlying market strength and increased buying.

 If you like to follow historical trends, you may want to consider this: According to the Stock Trader’s Almanac, November represents the start of the “best six months” of the year for the stock market. So far, this strategy is playing out, as money is coming in and driving stocks above key technical resistance levels.

 For investors like you, November may see more gains ahead, but I still am somewhat wary of the weeks ahead, given the looming higher interest rates and their impact on consumer spending and corporate earnings. Also, be careful not to ignore the oil scene just because oil prices are declining. There may still be a bull in the charts. Any sign of instability or a market shock could be enough to drive a renewed increase in oil prices.

 If the buying continues, we could see another up year for stocks in 2005, representing the third straight year of gains since the bear market from 2000 to 2002.

 On the other hand, based on what we are currently seeing, 2005 may also record the worst returns in three years and our second straight year of declining gains since the impressive showing in 2003 when the NASDAQ and Russell 2000 returned 50.01% and 45.37%, respectively. 2004 saw gains fall to 8.59% and 17% for the NASDAQ and Russell 2000. And, to date in 2005, the gains are a miniscule 2.22% and 3.17% for the NASDAQ and Russell 2000, respectively. The decline reflects reduced market optimism.

 Let’s watch how 2005 ends, as it could set up the market for 2006.

Next Post:
Previous Post:

Tags: , , ,










Sign Up for PROFIT CONFIDENTIAL and
receive a FREE copy of our exclusive report:
"A GOLDEN OPPORTUNITY FOR STOCK MARKET INVESTORS"

Enter e-mail:

We respect your privacy and
will never share your e-mail address.



Profit Confidential AuthorGeorge is a Senior Editor at Lombardi Financial, and has been involved in analyzing the stock markets for two decades where he employs both fundamental and technical analysis. His overall market timing and trading knowledge is extensive in the areas of small-cap research and option trading. George is the editor of several of Lombardi’s popular financial newsletters, including The China Letter, Special Situations, and Obscene Profits, among others. His trading advice on stocks and options is also found on his daily trading site, Daily Profits. He has written technical and fundamental columns for numerous stock market news web sites, and he is the author of Quick Wealth Options Strategy and Mastering 7 Proven Options Strategies. Prior to starting with Lombardi Financial, George was employed as a financial analyst with Globe Information Services.

Daily Profits


Enter your e-mail address to subscribe to
Profit Confidential — IT'S FREE!
Enter e-mail:
ALSO RECEIVE A FREE COPY of our exclusive report:
"A Golden Opportunity for Stock Market Investors"

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

 

Corporate
About Us
Privacy
Disclaimer
Contact Us
White List
Sitemap

Profit Confidential
Predictions
Gurus
Archives
FREE Sign-Up
RSS
Twitter
Facebook

Editors
Michael Lombardi
George Leong
Mitchell Clark
Tony Jasansky
Robert Appel
Wendy Potter
Sasha Cekerevac

Topics
Gold Stocks
Stock Market
Bear Market
Bull Market
US Dollar
Euro
Interest Rates

Expertise
U.S.Deficit
Real Estate Market
Debt Crisis
Chinese Economy
Economic Analysis

Guidance
Investment Guidance
Retirement Plan
Chinese Stocks
The Best Stocks
Gold Stock Picking
Real Estate Investment

Resources
Gold
Precious Metals
Real Estate News
Gold Investments
Investing in Real Estate


Profit Confidential Disclaimer