Market Rockets into Second Quarter

Apr 1, 2008: 9:21 AM CST

How were your trading results for the first quarter? The S&P lost 10% last quarter (and year to date), and the following chart shows the returns in Q1 for the major US Market Indexes:

That was actually the worst quarter in five years!

How did the market begin the 2nd quarter? So far (intraday), the S&P has surged over 2% and looks to be headed for a strong close.

The strength (intraday) has originated from the Financials and Consumer Discretionary Sectors – this is an excellent sign for the overall market if the trend continues.

The Financials Sector (XLF) was up over 5%, while the Consumer Discretionary Sector appreciated over 3% (both intraday).

Commodities have been retracing, and could be forming potential tops, which will boost the overall stock market (lower oil prices and lower commodity prices in this environment validates the Fed’s claim that a slowing economy will curb inflation).

Will this large (relative) rally be a perverse April Fool’s joke played on us by the market?

Let’s keep an eye on these developments and see if new trends emerge!

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