Welcome to June in a Big Way!

Wow June started out great as the Dow surged 241 points and NASDAQ added 62 points during the first two trading days of the month. On Monday and Tuesday stocks were bolstered by good economic data and the conclusion of the General Motors faith.

Today, the stock market has given back close to half of the gains from Monday and Tuesday as the Dow is down 100 and the NASDAQ is down over 30 points. Most of the decline can be attributed to worst than expected economic data. The Commerce Department said that factory order rose 0.7 percent, missing the widely expected number of 0.9. Also the service industry showed an eighth consecutive monthly decline.

Today’s decline can be seen as a welcomed break from the hot 4 session rally. We expect to see the stock market cool down a little from their recent gains. June is typically a poor month for stocks but this year has been far from typical so we will keep a close watch. The direction of the market can quickly shift as more government intervention is expected in the near future. We expect June to be a very rocky month for stocks.