Weekend Reading: Fear vs. Greed

Welcome to another edition of Weekend Reading. First a look back at the week that just finished, then a look forward to the week ahead, and, lastly, a summary of articles and research papers worth reading.

It was quite a ride this week, but markets settled down as the week progressed. We ended Friday's with most indices down slightly on the week but well above the levels they reached Monday and Tuesday.

The coming week blissfully will be shortened by the long Fourth of July weekend. Investors continue to swing wildly between fear and greed. Confidence dissipates at the slightest provocation, only to return quickly as markets shrug off bad news and march higher. That's more or less normal fare for markets, of course, but the recent fear/greed swings have been pronounced as skepticism remains high about the current recovery. On that note, one of the more entertaining events of the week promises to be the sentencing Monday of fraudster Bernie Madoff.

Turning to economic indicators, next week will bring the U.S. Labor Department's June jobs data, the S&P/Case-Shiller numbers for April home prices, and the Chicago Purchasing Managers Index for June business activity.

As for earnings, next week will see reports from General Mills(GIS), Constellation Brands(STZ), and MSCI(MXB). Earnings get underway in earnest the following week as second-quarter reports begin pouring out.

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting