Recap Of The Stock Market Ending Friday 06/25/10

Today I’m going to recap the stock market for the trading week ending Friday 06/25/10.

This week we didn’t see much positive action in the stock market. However, on Friday we became one step closer to having a financial reform bill pass that the banks and the government can agree upon. Once the bill is signed in writing I believe the banks will start to lend more money to small business and the everyday consumer. This will help fuel growth back into the economy. More money will be spent on consumer goods and businesses will eventually higher more employees in order to keep up with the growth of the economy. More products sold = more business = jobs.

Jobs are the single most important component to drive the economy higher. If people are unemployed they are not able to spend money. That’s the bottom line! The economic numbers looked terrible this week. The economy was growing slower than expected and the housing numbers were negative, which resulted in a 300+ point drop in the DJIA (Dow Jones Industrial Average) I’m confident that the banks will begin to lend more money in the near future. If they don’t the economy will be slow to come back and the stock market will have a tough time going higher.

Another interesting move I saw on Friday was a huge volume spike in WFT (Weatherford International) Of course whoever has been following me knows I really like this company. In the last couple minutes of trading there was a massive amount of buying that took place. WFT was up and down for most of the day and boom a huge spike occurred in less than 5 minutes. This wasn’t a normal move. The volume traded on this stock was more than 200% of the normal volume on a single day. This is very positive for a stock. So keep your eye on WFT next week because usually high volume to the upside is followed with positive news and increased buying. 

Well that’s it for today. Enjoy the rest of your Sunday.  Stay positive and don't let the stock market push you around.  Stay the course!

Thank You,

Clay-

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