Signs Point to Market Rally
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (TheStreet) -- Recent news regarding a number of key market factors has been generally positive and our main concerns are beginning to lift.
1. The Federal Reserve's QE2 program ended without any disturbance in bond yields.
2. Corporate earnings and guidance on future earnings from corporate leaders is better than expected, thus far.3. The economic soft spot appears to be dissipating as Japan, the world's third largest economy, comes back online. 4. While a deal is not yet in hand, we have seen increased clarity regarding the debt ceiling debate around a $1.5 to $2.5 trillion package of spending cuts. 5. A breakthrough on the Greek debt problems in Europe has taken place with a second rescue package. The changing environment may inspire investors to re-engage the markets and reduce defensive positions. The S&P 500 posted a gain of 2.2% last week, reversing the prior week's losses. A further rally may be in store for stocks as the headwinds fade and happy days return with growth and employment picking up in the second half of the year. It seems the market may be looking to the 1950s for inspiration. A potential path for stocks in the second half of the year may be that they continue to follow the path of 1951.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV