After a long weekend full of the unexpected, I finally got a chance to take a look at the coming week and there is some definite uncertainty that could sway the markets in either direction. At present, many believe that most stocks are too expensive compared to the economic reality that is faced by all. With the consistent run upwards, inflated prices are seen in all sectors. Since March, the S&P only had one negative month which was this past October. A breather is great, but perhaps a bigger one is needed to let a little more air out of some of the pumped stocks.

With a Fed meeting this week, another great uncertainty is going to be the sentiment their meeting brings out. The wording of the minutes of the meeting are carefully created and highly scrutinized to find cues on market outlooks. With interest rates still at historic lows, its now a matter of time before they finally have to start coming up. When, is the big question. The dollar was taking a beating for a few weeks but this past week, it finally made a movement higher against the Euro. I was hoping for a par on the Canadian dollar but did convert some money at 97% parity which is good. If another chance comes, I will try to hedge more.

Tonight another downer comes from CIT group which filed for bankruptcy after getting a bailout not too long ago. Its funny, I and probably anyone else with half a brain could have expected this. I am glad I played this stock for only a short time before passing it up like road kill.

Earnings wise, Monday will be the day that:
Before Markets Open:
Ford (F) reports an expected of $0.12/share.
Health Insurance company Humana (HUM) is poised to report a profit of $1.77/share.
Lowes (L) will post a profit of $0.89/share.

After Markets Close:
Chesapeake Energy (CHK) post a profit of $0.65/share.
Kinross Gold (KGC) post profit of $0.12/share.

Happy Investing!

Aman, MBA

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  2. Outlook for Week
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