Equities In September

Good morning. It has been rather cool lately, unusually cool for late Summer. I was out yesterday with a sweater and a jacket on. I am not physically adjusted to temperatures in the 50s quite yet. In February if 50 degrees somehow comes along, its like a heat wave.

Equities are impressing even a die hard pessimist like myself lately. Its September and the indexes are all floating just below yearly highs. The market has not taken a precipitous fall just yet. People are even talking about a shift from bonds into equities.

Next week investors will get some words of wisdom from the Fed. Allegedly anything resembling something better than Armageddon will propel the markets even higher and that's fine with us.

The stinker in the week will be reports on housing. Jobs and housing, jobs and housing, this is the mantra. The reports on housing will come all week long. Think of it like bowling where you've just thrown the ball, its rolling down the lane, and you use some mental body English to levitate the ball into the pocket. We need some of that very body English to kick housing just a tiny notch higher.

Reuters: Wall St Week Ahead: Fed holds key for stocks to break range

...the S&P 500 seems poised to move above 1,130. Some chartists see breaking that level as a harbinger for future gains, with overhead resistance not seen until 1,173 and then at the year's high near 1,220.


In terms of economic data, next week's schedule has a daily dose of housing indicators. From the housing market index on Monday to housing starts on Tuesday, followed by existing home sales on Thursday and new home sales on Friday...