Flat Week Is Full of Questions

As I noted earlier, it's been quite a wild kickoff for 2007's stock markets. For its 2007 performance, the Nasdaq so far has been:

• up 2%
• down almost 1%
• up 2.25%

And now we close out the first three days of the new year with the Nasdaq up 0.5%, for a tauntingly flat barometer.

Here are a few things I'll be thinking about this weekend:

I've got a pile of reports on DivX (DIVX - commentary - Cramer's Take) to read this weekend. It's not an expensive stock on this year's forward earnings.

The wild volatility and high volume at the start of the year have us all wanting to extrapolate the crazy trading action into the rest of the year. I think it's probably more a function of the calendar year kicking off. There's exponentially more levered-up institutional money in these funds-of-funds and hedge funds and so on, so their year-end and new-year moves are showing up in the form of this big rotation out of commodity-related instruments into other sectors.

Housing's not showing much of any improvement in inventories. Pricing's ugly, too. I think the gust of angry emails I get that I get every time I mention this topic that explain to me otherwise, carries some serious whistling-past-the-graveyard sounds.

And I still expect the Fedsters to do something cut-related about it. Pimco's Bill Gross sounded off on this topic this week, though he's talking about a broader recessionary cycle than I have in mind.

I'm reading, hearing and seeing the tech spending cycle accelerate as Japan's capital investments kick in along with U.S. enterprise and Vista and a new gaming cycle. It's all sparking growth.

The semi inventory glut and almost all of the wireless sector, away from Research In Motion (RIMM - commentary - Cramer's Take), are probably the only glaring weak spots in tech right now.

I really don't understand why Motorola (MOT - commentary - Cramer's Take) hasn't just bought Tellabs (TLAB - commentary - Cramer's Take) already. There's a ton of cash on the balance sheet (more than $3 per share), which would make the enterprise value much cheaper than the market cap. And it'd be such a good fit for Moto's infra business.

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Cody Willard is the manager of CL Willard Capital Management, LLC. He is a regular guest on Fox News, CNBC and other networks, and he writes a monthly column for the Financial Times. He is also an adjunct professor at Seton Hall University and the author of TheCodyReport.net, a monthly stock market newsletter. Willard appreciates your feedback -- click here to send him an email.