The stock market rallied 500 points last week for no apparent reason other than correcting two weeks of a selloff. The volatility in the market is incredible and I haven’t really noticed any consensus from experts on what is to come in the next few months. Everyone just seems to be throwing up their hands.
One thing is for sure, with earning season starting this week people will take this first round of results and consider it a picture of the overall health of business in America. I only have one caution: pay more attention to manufacturing and producing companies rather than getting caught up in the financial and tech sectors. I have a feeling that manufacturing will be weak while financials may show some positive results. If this happens, it’ll likely still push up the market, but I think it will be short term. We won’t have a truly healthy market until manufacturing gains a strong footing and starts to sell products at solid margins.
My two week estimate: under 10,000 for the DJIA.