3 Positives For The Stock Market

First off I would like to say that this week has been great for the stock market! I'm impressed! The market has responded rather nicely from last weeks run up. Although were below the closing prices of last Friday or near break even the pause in massive buying is a good thing. A market that gradually works it's way higher is much more sustainable than one that moves up rather quickly and gets too far ahead of future results. On that note I want to discuss the positives I have seen over the past couple of weeks.

1. Obama has addressed the fact that jobs need to be created in order for the economy to thrive. He has made it clear that this is now his main priority. One of his quotes was “Today, our most urgent task is to restore our economy and put the millions of Americans who have lost their jobs back to work,”  Jobs equal growth! Growth is fueled by spending. Jobs and growth go hand in hand. You can’t have one without the other. Obama focused on the importance of jobs in his speech last week, the stock market has taken his speech as a sign of good things to come.  That's why there was such a big rally last week. With Obama pushing towards creating jobs and spending money to rebuild are infrastructure the only way to get this done is to put people to work. This to me is exciting and very promising for job growth! Good call Obama!

2. Jobless claims have gone down. Yes down! 2 weeks in a row. Just today the claims came in better than expected with 451,000 claims compared to 470,000 expected by analysts according to Thomas Reuters. Yes these numbers are still high, but were showing positive signs of relief in the job market. If we continue to show improvement consistently in this report every week you will see some big changes. Man o man this market will truck higher! You won’t know what hit you once these numbers near the so called economic growth # of 400,000. By the time jobless claims get to 400,000 this market will be up 10-15% higher from its current price.

3. This positive came to me today. The trade deficit. This truly does matter. DEBT slows down a country just like it slows down an individual. All the money we have borrowed from other countries we must pay back with interest! July deficit fell 14% to $42.8 billion. That’s 14% less interest we have to pay on borrowed money. Less debt means more money for the United States to spend elsewhere to strengthen our economy. Yes this is just one surprise, but every bit helps.

All 3 of these are positives. Obama, Jobs, and the Trade Deficit.

I truly believe that optimism is coming back to the United States. With the confidence in the economy building the money from wary investors should flow back into the market over the next few months. If jobless claims continue to drop for the remainder of September and into October get ready for some action because the buying will continue to build and the only way for stocks will be up. Now that’s being optimistic! Many may not agree with me. Others will say it’s too early to tell, but if you don’t take action you will miss the boat. Take some risk! It’s the only way you will ever get ahead in investing and in life.

In closing I would like to remind everyone that today kicks off the start of the NFL season. This is a very important day. It’s like a holiday for me. All of you that are involved in Fantasy Football know what I’m talking about. Yeah Buddy! I’m predicting Adrian Peterson has over 100 yards and 2 TD’s. Let’s see if I’m right.

Have a great night!

Clay-

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