What to look for this coming week
After a week of higher than expected job growth and the market reaching all time highs here is what to expect for the coming week, Oct. 8-12.
Stocks: Expect market correction and profit taking after the past weeks performance. After Merrill Lynch reporting a $5 billion dollar loss in the 3rd quarter, JP Morgan and Bank of America also has reported $3 billion dollars in losses in mortgages and loans so look for these to set the tone for the market for the week to come.
Bonds: Heavy losses in bonds on job data might actually continue a bit more with the financial institutions reporting. As stocks correct take a look for opportunities in bonds but be very mindful of how the climate is and look for value.
Currencies: The Dollar is mixed, recovering from the recent massive lows. Look for value as the dollar slowly corrects itself and feeds off the positive jobs growth but be mindful of that as it might be short term. Look for value against the dollar as it struggles to steady itself. Look also to the Euro to fall early in the week and expect the Australian dollar to come down from its all time highs.
Fed: Last but not least, based on the job data reports look for the fed to not lower interest rates.
Stocks and equity will probably correct itself after reaching all-time highs but for the week financial reports, the beleaguered dollar, and fed speculation will take the helm. Take your profits and look for value.