Are bulls back in the game – Dow Above 10,000 – July 2010

An article by pgupta    No Comments

4 day week following July 4th proved to be a strong one after market gave in to bears for 10 trading sessions. Weak job market, continued European debt crisis seem to have done the trick during the trading sessions when everything looked bad. But last week seemed like bulls are back, they seem to have taken over the market. Death cross was observed by analysts and much bigger drop was predicted. However that does not seem right anymore.

Now that the second quarter is finished, a big focus is going to be on the earnings by various companies. Everyone is going to be watching these announcements. As we have seen from various reports such as Jobless claims etc, it does seem like recovery is slowing down. That is not necessarily a bad thing in my honest opinion. Expecting a steep recovery was like fool’s dream come true. Road to recovery is always bumpy and it takes a while for the jobs to get created. That is because of the uncertainty in the economy.

Bottom line is next few weeks are going to be very interesting given all the earnings. I am going to keep plenty of cash available to jump on the train on either side. But right now, I am sitting on the sidelines.