Stock exchange news. Thursday bear tone was continued by heavy selling on Friday continued bear. Last two days have totally eliminated the effect of growth, which was observed at the beginning of the week.
During the first half of the week the market was working out Bernanke’s speech on Friday. Moreover, investors’ enthusiasm was heated up by the evident steps for the better made by Europe. The news about Greek banks joining to stabilize economic environment in the distressed country supported bullish tone.
However, on Thursday sellers were on the first place, whereas the market moved to the background. Friday reports on wages were even more disappointing. According to official data, there has been no wage increase in non-agricultural sphere during entire August. Financial sector has also been seriously affected.
The news about a number of banks, Bank of America, JP Morgan Chase, and Goldman Sachs included, being accused by Federal Housing Finance Agency of suppressing facts about non-payment of mortgage credits and their law pursuit has only worsened the dismal. It has again encouraged investors to seek salvation from precious metals.
The current market situation is controversial. Many participants are expecting Barack Obama speech; they are demonstrating the wait-and-see attitude.
Analytics of Department of Portfolio Investments recommend withholding longs in the nearest future and waiting until there appear evident signs of market growth. Meanwhile, one shall have a closer look to the following papers: INWK, GDI, and LVS. These companies have rather strong grounding and not bad technical situations for entries.
INWK
LVS
GDI
In our opinion, the companies are underestimated and have good perspectives of growth. However, we would like to highlight that any purchases are to be held only on condition that there are evident signs of market growth.
It is Labor Day on Monday, and America has a day off.
