Sell off in the stock market

There was a sell off in the stock market on Thurs going into the long weekend.  But that was on very light volume and the result of a little hedging before a long patriotic, hence higher terrorist potential, weekend.  This next week is going to be a important one.  Earnings will start coming out and as we have not heard too many warnings up until now, the market that has been moving up in anticipation of a second half recovery, will be very interested in hearing what CEO’s have to say about earnings moving forward.  If they are improving and looking up, stocks will continue off but at least not sell off dramatically.  But if, on the other hand, corporate America doesn’t see improvement in earnings over the next 90 to 180 days, stocks could retrace their gains of the last couple of months.

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