Market Prediction week of October 20, 2008
Here’s what we’re looking at for this week, the factors, and how they will effect the market:
-Lower earnings reports (negative)
-Lower libor rates (positive)
-Higher dollar (mostly positive)
-Prospects of lowered Fed Funds rate (positive)
-Negative economic indicators (negative)
What these factors will do is push the market downward, but they cancel each other out to a certain extent, so we’re going to see a market that is waiting for news, its unsure and choppy, the volatility will remain and if any more major regulatory changes or government interaction comes in this might sway it upward. I project the DJIA will be down 500+ points this week overall, unless there is some more massive major governmental aid news. It will sway massively (-250, +250 in a day) though. The negative economic data will reassure the recession and continue to show that this wasn’t just about credit.
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