Last week the U.S. stock market destinations not running

There is a long served as team manager of the Baltimore-dimensional Buddha • Earl (Earl Weaver) there have been handed down the old baseball adage ─ ─ momentum is tomorrow's starting pitcher. This is the stock market's recent trading situation: There is no ongoing strong market trend, there is no clear and sustained investment inflows or outflows, but fluctuations in the stock was range trend, stock market performance of the all-good or bad depends on a variety of economic data or corporate news In line with expectations. In such a situation on the last Friday, when the stock market has been rising sharply in the second quarter GDP growth was weaker than expected led to a strong stock market rise on the same day the main reason. Some investors believe that the U.S. Federal Reserve (Fed) finally have reason to be going on for two years of rate increases to stop the process. The evidence is clear that with the bond market's performance mercilessly crushed in the Fed again on August 8 interest rate increase the possibility that the United States on the stock market. In view of this concept has been deeply rooted in the number of new jobs in July than expected in the news last Friday morning after the announcement out, the stock market and a repeat of that again. The stock market opened after 15 minutes, the Dow Jones industrial average on the price index rose 101 points, the Fed is the result of factors play a role, but the increase in the remainder of the day's loss exhaustive. The Dow Jones industrial average closed down last Friday 2:00, the whole week increased the accumulated 20 points to 11,240 points. Standard & Poor's 500 index and the Nasdaq composite index last week, no gains, which rose 1 point to 1279 points, which fell 9 points, down 20.85 points. Ironically, even though Fed Chairman Ben Bernanke (Ben Bernanke) will be the second this week, short-term interest rates remain at the level of 5.25 percent unchanged, investors are still not a clear clue. It was not because Ben Bernanke in the market and to communicate what mistakes, but continued growth slowed due to the economic characteristics, economic growth had dropped to a low level of danger. The boom in the housing market is declining, there is a rising trend of inflation, the situation is exactly what will happen no one is currently difficult to draw a conclusion. Economic situation and the current cycle of monetary policy are in such a delicate nodes. Although the two markets that Bernanke this week chose not to increase interest rates as high as 75%, but he will choose to raise interest rates at least the possibility still exists, if he really did was make a considerable part investors disappointed. Wall Street view, the ideal situation, of course, the U.S. economy is resilient enough to have, even if coupled with the interest rate several times not enough to pose a threat to its growth efforts. If we only study the various points of the index, the market will find: Standard & Poor's index has been out of the low in June, and recovered more than half of the five or six months when the ground, but the index is currently below its May high at the time of Still lower than 3%. However, participation in the stock does not rebound, the stock market in the future prospects they are still doubts and fears, which hinted that the future growth of the company's poor have become victims. In July, Standard & Poor's 500 Index constituent stocks of 500 in 68 fall at least 10%, 13 fell more than 20%, compared with only 25 stocks rose more than 10%, only A stock up 20%. Change the shares of almost all its earnings-related. From the short-term, sentiment indicators showed a slight sign of caution, but do not seem to hinder the emergence of short-term surge in prices. Robin Carpenter of hedge funds last week, the stock position will be in position to control the range of one-third of the low level of individual investors are money market funds transfer to a lot of money. However, before the emergence of a rebound in the short-term oversold signs no longer exist. Carpenter said that the traditional mutual fund managers are still burdened with high stock position. Yes, take a look at the money market fund inflows ─ ─ as well as Charles Schwab (Charles Schwab) announced last week its customers CDs investment reached a record level of operations ─ ─ from the reverse perspective, this is perhaps the against The signal to buy stocks. We are very clear when investors will be turned into a hedge emotional desire (in the stock market surged after the start.) But we do not know the exact time. It now appears that the inflow of retail funds can indeed be seen as the end of the 1990s surge in pre-market bullish signal, after all, but one day the market down. At the moment and investors to avoid stocks and indeed can be said to be cautious performance, but sooner or later will be reversed. The most bullish analysts, the reason being that borrowing Fed rate hike coming to an end. But in the market after the Fed stopped raising interest rates still tend to feel bad about it, because the Fed's actions have been sufficient to prove that economic growth and earnings prospects are at risk, and may lead to the final cut. For this reason, bond investors have begun to digest the rate cut may be in the first half of 2007. Market subconsciously made this understanding: Fed to do as a movement of people (interest rates), only to find a psychological comfort, a dessert for the next (rate cut) to prepare. From the Fed to relax ahead of the situation, seems to be sweet feast of the inevitable. But the final action must be going through a painful choice ─ ─ or is truly concerned about the recession, or out of fear of inflation. Whenever people recalled the years 1994-1995, "the medium-term adjustment" as well as the popularity of the market downturn, the pain disappeared long ago, as it is anything at the end of the 1990s will be able to achieve 20% increase in the prelude. But do not forget that in 1994 the Standard & Poor's 500 index from high to low down 10%, worse performance of the Dow Jones index, the bond market Yixieqianli, brokerage industry overall losses. By 1995, GDP growth fell to a quarter of 1%, Charles Schwab's stock was selling 10%. At the same time, the 10-year bond yields during the year were down 8% from 5.5%.