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iBooyah.com: Labor Day weekend rally

Happy Friday! This morning we received word the economy created 128K new jobs in August.  This is inline with most investor’s expectation.  This suggests our economy is not growing as fast and inflation should remain in check.  The job report also suggests the possibility of recession has diminished a little.  While recession is still possible, the job numbers provides evidence things are moving along at a sustainable pace.

This is good news for the stock market as interest rates should remain the same when the FOMC meets again on September 20, 2006. It would be a shock if the Fed further hikes the interest rate. The market believes it has a clear picture into the foreseeable future and has been rallying all morning. 

Days like today would be a good time to consider selling some your positions that have been underperforming or take a profit on recent gains.  Next week could be a different story as I believed the market has is due for a slight correction. Historically, September has been a bad month for the stock market.  I don’t expect this September to be any different.  In my view, this would be an excellent opportunity to lock in your gains and wait for the next weakness.  Rest assure, the weakness will come in short time.

Best of luck to all you traders and have a great Labor Day Weekend!

Disclaimer: The opinions and reports at iBooyah.com should be validated before taking any investment action. We are not responsible for the completeness or quality of the information. While we attempt conduct thorough research, there are no guarantees in accuracy. iBooyah.com is not liable for any damage caused by the use of any information provided, including information which may be incomplete or incorrect. All materials presented within is not to be regarded as investment advice or recommendations, but for general informational purposes only. We will take no responsibility if you trade based on the information in this site. Past return is no guarantee of future result, trade at your own risk.

Posted by ibooyah on September 1, 2006 09:29 AM |

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