Stock Forecast Methods

Stock Market Trading and Investing

A Short Overview of the US Stock Market

The US unemployment rate decreased to 9.7% in May, after rising to 9.9% in April. However, the economic growth in the first quarter was slower than expected; it grew at a 3% annual rate from January to March. Consumers and businesses spent less than first estimated. US trade deficit was a drag on economic activity. Also US housing market started falling more than expected in May to a five-month low as a home-buyer tax credit expired.

Evidently, fears continue to dominate investor decisions because of the debt crisis and financial regulatory reforms. It looks like many investors still watch for better moments to re-enter the stock market. An additional factor is seasonal – since summer almost always has been a sluggish period for stock investing. Nevertheless, S&P-500 index showed some strength for two weeks of June – the biggest two-week gain since November. The recent 13%-drop in May could be a healthy correction. Normally a correction is defined as a drop more than 10% from a recent maximum.

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June 19, 2010 Posted by | Stock Market Forecast | , , , , , , , , , , | Leave a comment

Sectors Comparative Analysis for Summer 2010

Each stock belongs to a general market, a particular sector and industry. An individual stock performance depends on the general stock market performance, as well as, on the sector performance. History evidences that different sectors perform differently in different periods. Therefore, choosing a right sector at the moment of investing can increase the chances of successful outcome.

The chart below shows the comparative analysis of expected sectors’ performance for the three months of 2010 summer. These 12 sectors composed of more than 500 US and Canadian stocks. Financial and Healthcare sectors look the best, the Energy – the worst. The question still remains if the stock market is going to be bullish this summer.

Sectors Comparative Analysis for Summer 2010

The chart has been calculated and plotted using Investment Analyzer InvAn-4. Its calculation based on a rank of stocks. The highest ranked stocks are expected to be the most probable best performers within the next three-month period. Stocks are ranked on the basis of the composite rating which is a combination of fundamental, technical, and timing ratings. The combination allows modeling quality of company and its stock very realistically.

Nothing in this piece or blog should be construed as investment advice in any way. Always do our own research or/and consult a qualified investment advisor. It is wise to analyze data from multiple sources and draw your own conclusions based on the soundest principles. Be aware of the risks involved in stock investments

June 7, 2010 Posted by | Stock Market Forecast, Stock Market Software | , , , , , , , , , , , , | 2 Comments