Important News to Come Tomorrow

The following quote may some up the bulk of what the market has been trying to over come for many weeks:

“It’s been this continuous (cycle of) hope leads to disappointment,” said Todd Salamone, senior vice president of research, Schaeffer’s Investment Research.

With earnings season coming to a close, the market begins to focus on the variety of economic numbers being released.   Now the most difficult part in dealing with these economic numbers is investors must remember that the large majority of these numbers are actually backwards looking.  One thing to remember is the numbers will actually continue to get worse even as the economy turns around.  Now it is still too difficult to tell if we have reached that point, but with every passing economic number we are getting closer.  While it is easy to say one should take these numbers with a “grain of salt’ and look towards the future, the market has a very difficult time actually doing this on a regular basis. 

Tomorrow’s unemployment number will most likely test investors ability to withstand continued disappointments.  Now the good news of this scenario is if we can finally break the cycle of disappointment, we could see a very nice turn around in the market. DC