Wall Street’s worst week of the year is finally over!

June 9, 2006 · Print This Article

During a week of hardly any worthy econonomic reports the market moved substantially lower this week. However, the market woes did not affect our Gap Fade Strategy as we were able to make 12.1% on our trade yesterday. We can’t say enough about our strategies and their peformance so far this year. Diversification is the key to success over the long-term and our strategies have presented a wonderful opportunity as a possible way to diversify a portfolio. I guess this is why alternative investments have become so popular over the last few years. Now that the average person can access strategies that were once only offered to the financially priviledged there is no excuse not to educate yourself on the many investment alternatives out there.

Uncertainty surrounding inflation continues to be a hindrance for the market. Now Wall Street will focus on the upcoming PPI and CPI on Tuesday and Wednesday, respectively. This market is extremely data dependent right now, so both of the reports (especially the more heavily weighted CPI) should give us decent clue as to where this market is headed.

Next week, should present a few decent trading opportunities given the current oversold conditions established Friday. With the Monday and Tuesday of expiration week historically positive, the next few days could (and let me emphasize could) be present a few short-term opportunities. However, given the uncertainty surrounding inflation the market could trade sideways until the PPI and CPI are out. Until then, have a wonderful weekend!

RSI Wilder (5) for June 9, 2006