The good thing about first quarter is that it is over. It was a quarter full of events by any measure, the commondities have achived historical high price, and one of the largest Wall Street firm went pooh in a matter of days. The performance of US market has been dismay. DJIA has down 7.6%, SP500 10% and Nasdaq a whooping -14%. So, if you're making money, congraduation should be in the order, because, it is a tough enviroment to trade, the market are so volatile and news driven, and there are so many big reverse days, it is hard to hold any position.
So, will second quarter bring any new hope?, will the stock market jolt out this gloomy mood and start to ascend? Or, will there be bad news from Financial sectors?
For starters, In order for stock to resume a positive projectory, the earning and outlook have to be better, that make April an important month. If we can avoid some oracle kind of stories, we may have a hope. It is actually very possible. Since the expectation are so low now, any good news will get a positive spin.
Secondly, the government is at work to resolve the credit problem. Morale aside, it is always good in a the short term for government to lend a helping hand. Longer term, it is another story, there are will be more regulations for banking and Hedge funds, we may not see so much liquility for some time to come.
So, these two forces, if join hands, could foster a healing enviroment. It may not enough for stock to regain its former altitude, but it at least could prevent the market from going down.
I am a little optimistic looking forward :), hopefully, it is not over optimistic.
Of course, financial and home, and now technology have to be in our attention whenever we make a desicion to go "long" or "short". The former two are the sources of our current problem, and without last one, the real bull market will not materialize.
Ok, let's, what tomorrow holds for us, hopefully, it will be a bright day.
