July 8, 2012
Weekly Market Outlook
By Keith Schneider
After a dose of irrational exuberance based on the Euro rescue, the US equity markets finally took a breather this week closing marginally down, but still in a bullish market phase. One concern is the number of distribution days over the past few weeks, even as the market has bounced nicely.
Another concern is the underperformance of the cloud computing group. A recent addition to the ever growing ETF mania, SKYY (ISE Cloud Computing) lost almost 5% Friday dropping below key moving averages and into inclement weather, or an unconfirmed bearish market phase. This ETF is laden with 40+ companies leading the charge into the next best tech thing, cloud computing.
Meanwhile, Homebuilders and Biotech, which are currently leading this market, continue to perform well. Earlier this year, the rally had been led by technology and cloud computing. But now that it has stalled, we need other infrastructure plays which add jobs, get the recovery moving faster, and create substance to current market valuations. This mixed bag of GOOG, AMZN, and IBM all stalled at interesting points. Let’s take a look at this week’s video.
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