The market certainly was unpredictable last week as the Dow surged more than 160 pts on Monday, give it all back during the week, and than gain it all back this past Friday. Thanks to a nice 3.8% GDP number. We now know the economy is still growing at a healthy pace. That took care the worry of a slowing economy.

Everyone is expecting the Fed to raise rate to 4% and as long as the Fed does what it is expected and lessen the hawkish tone, I believe the market is going to break to the upside. Obvious the breakout could be derailed by a lot of the economic data coming out this week if the numbers are not in-line with consensus.

Bottom line, I’m bullish this week.

This entry was posted on Monday, October 31st, 2005 at 5:36 am and is filed under Stock, Weekend Review. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.