The Week ahead

Trading Range

No real change her, still expecting a very narrow trading range. Last week was down 100, maybe this week is up 100 on the NASDAQ. The general trend since early April is up, but the market is in no hurry to get anywhere fast.

The reason the market is in no hurry is that there are a number of factors that can bounce things one way or the other. On the good side, the unemployment picture seems to be improving and consumer confidence is firming up as well.

On the down side, Iraq is saying it will not export oil next month in response to an extension of the sanctions against it by the U.N. Security Council. Saudi Arabia is promising to make up any shortfall from the loss of Iraqi oil, assuring the Iraqi's might soon back down. Still the instability might just be enough to spook the markets for a few days.

The inventory of economic reports is very light this week. Inventory, productivity and initial claims for unemployment present both opportunities and challenges for the equities markets.

The bold prediction of the crack staff and computer models here is that the trading range will continue, for weeks if not months. Happy trading.

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Shmuel Protter
investmenttool.com