How do you think the stock market will open next week, will we have another rally?

Question

Damn people dont get all bent out of shape! I have some stock I am going to sell anyway and this week it went up 10%, that is the only reason I am asking.

Answer 1

I think it will be weak until one of two important events. 1) Some of the big brokerages will report earnings. 2) The Fed will cut rates either 25 bps or 50 bps.

The only sure thing here is that the market will go up big if we get a 50 bps cut.

Answer 2

I don't know about a rally. From what I've been seeing lately. There are many a financial reporting site giving out info as to what to do when a recession comes or the signs of a recession. If the market rallies, its going to be do to self-delusional investors hoping for the best. Enjoy what earnings you can now. Come 2008 things are not going to be so peachy for many investors.

Many signs are there that show a possible onset of a recession.
1. crappy currency value
2. Bad housing market
3. credit woes felt by all (and no the worse is not over, because corporate America doesn't want to panic the market)
4. Energies and food are becoming more expensive, basically inflation (ie milk and gas just to name a couple)
5. Huge deficits created by our government's inability to manage our finances.
6. Government intervention that is basically a "finger in a dam," one that is going to fail, if not already because its in adequate in so many ways.
7. Weak Consumer confidence
8. Subtle Job cuts
9. Reviews of quarterly profits
10. And non-stop rate cuts.
11. This country has enjoyed to long of a growth period without any substantial set backs. We are way overdue, the system needs a reset.

If you think all that I have listed is nothing more than hooey. Do some research and I guarantee you will find one or more articles that discuss about recession. (They have increased in volume since September). Remember that Corporate America, the Fed, nor the government will ever admit that a recession is already in the works or about to happen some time in the future. To do so would be financial and political suicide.

I am not against investing during bad times, hell you could make a killing years later if you stay the course and don't freak. But don't go too gun happy. Because you may be on top of the world now, but come the next time around you may be kicking yourself in the but.
I may sound like I'm making a prediction but you can't really ignore the situation at hand. This is not the tech collapse. I am talking about people's homes, credit, and jobs. When the market reflects the people the situation is either good or bad and today its bad.

Answer 3

The Federal Reserve Board meets next week. If they cut rates 1/2 point the market will go crazy. Anything less, will still get a bit of a bounce. The likelihood is that the rates will get cut at least a quarter point, so my best guess is that the market will go up, but profit taking will kick in by the end of the week.

If you want a better long term outlook, look into the trends of what is going on in the market. Oil won't get too much cheaper, so companies that make refinery equipment, gas pipelines, and infastructure for the oil and gas industry could do very well in the long run. Check out HAL I think they have all the connections and experience to reap a lot of rewards and are not trading at their peak.

Who is going to make out with all the foreclosures on the market? One persons tragedy is another persons fortune.

Answer 4

I think the market trades sideways until Tuesday afternoon when the Fed does it's thing. Like others have said on here, a .50 cut and we're off to the races, but if it's only .25, I still think we hold our own until later on in the week, when there might be some slight profit taking.

Watch out for 1490 on the S&P, which is support. If it breaks that, then we could be falling considerably!

Answer 5

It's almost impossible to predict the stock market in the short-term, but as for the long-term, just take a look at a chart of the Dow Jones since its' inception.. enough said.

Good Luck

Answer 6

The stock market will rise at least 500 points on Monday. If I'm right, I'm a genius. If I'm wrong, I'm just like everyone else (this time)!

Trying to predict what is going to happen falls into the lap of Oracles (and not the one from Omaha) and Gods, not we mere humans.

Answer 7

it is going to probable bypass down, based on the maximum modern unemployment numbers and additionally based on the certainty that $3 hundred Billion of the bailout money is long gone any no one has the sightest concept as to the place it went. My prediction is that the DOW will lose 800 factors next week.

Answer 8

If anyone knew for sure what the market was going to do on Monday, they probably would not tell you.

For what it's worth, I think stocks are heading lower, but they may have ups and downs.

Answer 9

Rally-they come and go. Invest in fundamentals. like T. Rowe Price Capital Appreciation . It hasn't had a down year since 1990