Weekly Newsletter June 24th - June 30th

Current Events: The rebound of June took a detour last week as the U.S. indexes struggled throughout most of the week, ultimately resulting in losses across all major U.S. indexes. The same worries that plagued the markets in early May still linger with just as much pessimism today over as Greek bailout indecisiveness and a weak U.S. economic recovery do not seem to be on a fast track to prosperous solutions.

What to Look for This Week

While investors will certainly keep an eye on the events occurring overseas, key economic announcements on housing and the current state of the American consumer will provide valuable signals on the health of the U.S. economy. For bullish investors to see a bounce back to June high's most likely positive signals from both the U.S. and Europe will be needed in order to produce a strong enough rally.

News Affecting the Markets

With Spain formally asking for help for its banking system and the Greek finance minister reportedly resigning just four days after taking office, the ongoing saga which is the Europe Union continues to hang like a dark cloud over U.S. stocks. Even with the recent increase in housing sales did little to boost the U.S. stock indexes as fears of default overseas continues to haunt antsy investors.

Smart Investing

Trend is Your Friend: You may have heard the phrase “the trend is your friend” before either on the news or when reading a financial article of some sort. But what exactly does this mean? One standard definition of an uptrend is a succession if higher highs and higher lows. The trend can be considered intact until a previous reaction low point is broken. A violation of this condition serves as a warning signal that the trend may be over. It should be emphasized, however, that the disruption of the pattern of higher highs and higher lows (or lower highs and lower lows) should be viewed as a clue, not a conclusive indicator, of a possible long-term trend reversal. This simple, easy to implement indicator is powerful, however, as with most indicators use more than just this as an ultimate determent of your decision to enter, exit, or hold a position.

Earnings for the Week

Monday: Apollo Group Inc (APOL) {After the close}

Tuesday: H and R Block Inc (HRB) {After the close}, LDK Solar Co Ltd (LDK)

Wednesday: Commercial Metals Co (CMC), General Mills Inc (GIS), Lennar Corp (LEN), McCormick & Company Inc (MKC), Monsanto Co (MON), Paychex Inc (PAYX) {After the close}, Whirlpool Corp (WHR)

Thursday: Accenture PLC (ACN), Family Dollar Stores Inc (FDO), Nike Inc (NKE) {After the close}, Rosetta Genomics Ltd (ROSG), Shaw Group Inc (SHAW), Smith & Wesson Holding Corp (SWHC), TIBCO Software Inc (TIBX)

Friday: Constellation Brands Inc (STZ), Finish Line Inc (FINL), KB Home (KBH)

* Earnings dates and times are subject to change

Economic Data this Week

Monday

New Home Sales @ 10:00 AM for May (Act. = 369K)

Tuesday

Case-Shiller 20-city Index @ 9:00 AM for April (Est. = -2.5%, Prior = -2.6%)

Consumer Confidence @ 10:00 AM for June (Est. = 63.0 to 64.0, Prior = 64.9)

Wednesday

MBA Mortgage Index @ 7:00 AM for 06/23 (Est. = n/a, Prior = -0.8%)

Durable Orders @ 7:30 AM for May (Est. = 0.5% to 1.0%, Prior = 0.0%)

Pending Homes @ 10:00 AM for May (Est. = 0.5% to 1.0%, Prior = -5.5%)

Crude Oil Inventories @ 10:30 AM for 06/23 (Est. = n/a, Prior = 2.861M)

Thursday

Initial Claims @ 8:30 AM for 06/23 (Est. = 385K, Prior = 387K)

Continuing Claims @ 8:30 AM for 06/16 (Est. = 3,275K to 3,283K, Prior = 3,299K)

Friday

Personal Income @ 8:30 AM for May (Est. = 0.0% to 0.1%, Prior = 0.2%)

Personal Spending @ 8:30 AM for May (Est. = 0.1%, Prior = 0.3%)

Chicago PMI @ 9:45 AM for June (Est. = 52.0 to 53.0, Prior = 52.7)

Michigan Sentiment @ 9:55 AM for June (Est. = 73.0 to 74.1, Prior = 74.1)

Weekly Newsletter June 17th - June 23rd

Current Events: The U.S. indexes rebounded from a long, powerful downtrend with a positive showing last week. This is something that has been few and far between since early May, however with Greek elections nearing conclusion, direction on the euro-zone crisis may soon become much clearer for worried investors.

What to Look for This Week

There is no question that the U.S. economy has a multitude of negative signals. Almost everywhere you look weaknesses and uncertainty can be easily be seen even by the most novice of scrutinizers, whether its retail spending, manufacturing production, or consumer confidence, all signs point toward downward. However, most investors are now attempting to quantify how long such a downtrend can be expected. Due to the instability of the U.S. economy the FOMC is strongly expected to leave the Fed rate at the remarkably low 0.25%.

News Affecting the Markets

The much awaited election in Greece is nearing its end as ballots have been cast and most votes have been counted. Based on the early projections, the winner of Sunday’s critical parliamentary elections is the pro-bailout New Democracy party, which currently holds a narrow lead over antiausterity Syriza. Such a result should keep Greece in the euro zone if the conservative political party holds onto its lead and then can form a governing coalition.

Smart Investing

Closed-End Funds: Investors are very familiar with open-end mutual funds, portfolios of securities that offer diversification and professional management at a low cost even for smaller-sized investors. Closed-end funds differ from mutual funds in that once the fund issues shares, those shares are bought and sold in the open market; unlike a mutual fund, the closed-end fund does not itself stand ready to redeem shares from investors wishing to sell their shares. Closed-end fund shares have both a net asset value and a share price, and sometimes trade at discounts or premiums to net asset value. There are many types of closed-end mutual funds and focus on a wide variety of securities, including common stocks, preferred stocks, high-yield bonds, taxable and municipal bonds, and foreign securities. As with mutual funds, closed-end funds can add to the diversity of your portfolio. You might find that a closed-end fund has more potential for higher returns because of the relative small size of the fund, which gives the managers more options and leeway. However, be cautious as this can also lead to higher risk as well.

Earnings for the Week

Monday: No major earnings scheduled.

Tuesday: Barnes & Noble Inc (BKS), Discover Financial Services (DFS), FedEx Corp (FDX), Jabil Circuit Inc (JBL), Jefferies Group Inc (JEF), La Z Boy Inc (LZB) {After the close}

Wednesday: Bed Bath & Beyond Inc (BBBY) {After the close}, Goodrich Corp (GR), Red Hat Inc (RHT) {After the close}, Rosetta Genomics Ltd (ROSG), Sonic Corp (SONC) {After the close}, Steelcase Inc (SCS) {After the close}

Thursday: Carmax Inc (KMX), ConAgra Foods Inc (CAG), Oracle Corp (ORCL) {After the close}, Rite Aid Corp (RAD)

Friday: Carnival Corp (CCL), Darden Restaurants Inc (DRI)

* Earnings dates and times are subject to change

Economic Data this Week

Monday
NAHB Housing Market Index @ 10:00 AM for June (Est. = 28, Prior = 29)

Tuesday

Housing Starts @ 8:30 AM for May (Est. = 710K to 719K, Prior = 717K)

Building Permits @ 8:30 AM for May (Est. = 720K to 725K, Prior = 715K)

Wednesday

MBA Mortgage Index @ 7:00 AM for 06/16 (Est. = n/a, Prior = 18.0%)

Crude Oil Inventories @ 10:30 AM for 06/16 (Est. = n/a, Prior = -0.191M)

FOMC Rate Decision @ 12:30 PM for June (Est. = 0.25%, Prior = 0.25%)

Thursday

Initial Claims @ 8:30 AM for 06/16 (Est. = 380K, Prior = 386K)

Continuing Claims @ 8:30 AM for 06/09 (Est. = 3,250K to 3,278K, Prior = 3,278K)

Existing Home Sales @ 10:00 AM for May (Est. = 4.50M to 4.56M, Prior = 4.62M)

Philadelphia Fed @ 10:00 AM for June (Est. = -0.2 to -3.5, Prior = -5.8)

Leading Indicators @ 10:00 AM for May (Est. = 0.0%, Prior = -0.1%)

FHFA Housing Price Index @ 10:00 AM for April (Est. = n/a, Prior = 1.8%)

Friday
No major announcements.

Weekly Newsletter June 3rd - June 9th

Current Events: Worried investors are anxiously awaiting the performance of the financial markets this week in response to last week's downslide. After Friday's huge sell-off across all major U.S. indexes, fear and doubt is likely to ensue. Many are suggesting that Friday's close will trigger an avalanche of sell signals Monday and throughout the week. The lofty gains experienced in the U.S. markets earlier this year have been almost completely erased in all major indexes.

What to Look for This Week

All eyes will be on any and all developments out of Europe, as well as any reactions from the U.S. Federal Reserve after the large dip last week, which has given already nervous investors to many more reasons to worry. Certainly the anxiety deepens over the euro-zone and U.S. economies as investors seek tangible answers. While it is unlikely, some hints of possible answers may come on Thursday as Fed Chairman Ben Bernanke testifies before Congress.

News Affecting the Markets

The surprisingly weaker-than-expected U.S. jobs data plummeted the U.S. markets on Friday. However, this devastating news did not impact the U.S. alone. The disappointing jobs data has created fresh doubt about the global economy as well, causing the financial markets throughout the entire world to tumble. Many are now anticipating that the U.S. Federal Reserve will go ahead with a counter to the recent poor economic performance with a QE3 stimulus plan.

Smart Investing

Manage the Hidden Fees in Your Life: Unwanted fees have a way of taking their toll on budgets. They appear every month, neatly hidden among the lines of legitimate charges from banks, credit card issuers, brokerages, etc. Each one separately may not amount to much, but add them all together and the costs become significant. To be sure, some fees are unwanted but not unwarranted. Count late fees on mortgages and overdraft fees on checking accounts among that number; they're certainly pesky, but they are the result of untidy financial management. More than one a year should spark consumers to take a closer look at the way they handle money. Some hidden fees, however, can be trimmed in a few simple steps. Hidden fees you should consider reducing/eliminating include maintenance fees, fiduciary fees, cramming fees, garbage fees, ATM fees, and credit card annual fees. While these types of fees may not seem like much individually, collectively they reduce your disposable income. As a result, the amount you have readily available to invest decreases, hindering to some degree the amount you can spend elsewhere, such as towards your investments.

Earnings for the Week

Monday: Dollar General Corp (DG) {After the close}

Tuesday: FuelCell Energy Inc (FCEL) {After the close}, JA Solar Holdings Co Ltd (JASO) {After the close}, Ulta Salon Cosmetics and Fragrance Inc (ULTA) {After the close}

Wednesday: Hovnanian Enterprises Inc (HOV), Men's Wearhouse Inc (MW) {After the close}, Pall Corp (PLL) {After the close}, Rosetta Genomics Ltd (ROSG)

Thursday: Altera Corp (ALTR) {After the close}, J. M. Smucker Co (SJM), Navistar International Corp (NAV), Pep Boys-Manny Moe & Jack (PBY), Quiksilver Inc (ZQK)

Friday: Oracle Corp (ORCL)

* Earnings dates and times are subject to change

Economic Data this Week

Monday
Factory Orders @ 10:00 AM for April (Est. = -0.3% to 0.1%, Prior = -1.9%)

Tuesday
ISM Services @ 10:00 AM for May (Est. = 52.0 to 53.0, Prior = 53.5)

Wednesday
MBA Mortgage Index @ 7:00 AM for 06/02 (Est. = n/a, Prior = -1.3%)

Crude Oil Inventories @ 10:30 AM for 06/02 (Est. = n/a, Prior = 2.213M)

Fed Beige Book @ 2:00 PM for May (Est. = n/a, Prior = n/a)

Thursday
Initial Claims @ 8:30 AM for 06/02 (Est. = 375K, Prior = 383K)

Continuing Claims @ 8:30 AM for 05/26 (Est. = 3,250K, Prior = 3,242K)

Consumer Credit @ 2:00 PM for April (Est. = $10.0B to $12.7B, Prior = $21.4B)

Friday
Wholesale Inventories @ 10:00 AM for April (Est. = 0.2% to 0.5%, Prior = 0.3%)