Stock Market Correction Over?

After Monday’s 235 point increase on the Dow Jones, many would consider the notion that the recent correction that started on May 11th is over. Well that’s a little too optimistic for us. The impressive gains on Monday was a bit unexpected, in our opinion, we can expect the market to give back the gains later this week. Eventually the stock market will not be able to ignore all the negative economic news. As we have been preaching the last two weeks, the stock market is overbought and will retract. Below are some reasoning behind our opinion.

• Job losses have continued to increase
• Consumer spending is down and Hewlett Packard’s recent report of a 17 percent profit drop, 3 percent sales drop, and to top it off, a 2 percent job layoff
• The housing start numbers are at their lowest since 1956, signs that we are still in the heart of a recession
• Oil prices starting to creep past $60 a barrel

With so many reasons to sell, its an anomaly as to why the market is still up.  We continue our bearish outlook in the overall market.


As always we wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy