Enjoy It While It Lasts

Market Trend:
Up, Short Term

Market Outlook: Oscillation Point

Peter’s Pick:
Polycom
(
PLCM |
Quote |
Chart |
News |
PowerRating)
,
Raindance
(
RNDC |
Quote |
Chart |
News |
PowerRating)
, WebX
(
WEBX |
Quote |
Chart |
News |
PowerRating)

The Broad Market Outlook:
June Swoon

Market and technical
indicators are strongly trending up
.
Most economic indicators are trending down. That’s a recipe for a June market
swoon if we ever saw one. So enjoy the rally while it lasts. But if the economic
indicators don’t begin to rebound sharply in May and June, it’s going to be a
long, hot summer. You are forewarned.

The
Week’s Macro Data Market Movers:
A Nothing Week

The Macroeconomic Calendar


DAY


EVENT

Monday

  • ISM Non-Manufacturing


Tuesday

  • FOMC


Wednesday

  • Consumer Credit


Thursday

  • Jobless Claims

Monday’s ISM number is the only likely candidate to throw a wet blanket on what
should be a rally week. Expect the FOMC to stand pat BUT
we would very much like to know whether the Fed is committed to buying
bonds at the long end of the curve to lower long term interest rates.
Sophisticated investors, journalists et al need to shift their focus away
from the short end and understand that operating on the long end is much more
effective in a world of deflation, slack business investment, and an impending
housing bubble.

If you have a favorite macroplay or stock you would like us to consider in this
column, send an e-mail to

peter@peternavarro.com
or go directly to

https://www.peternavarro.com
. We’d love to hear from you.