Friday, November 10, 2006

Investors Resigned to Their Fate on Dems

Yesterday, Wall Street reacted feverishly to the takeover of Congress by Democrats. Today, investors seem resigned to their fate. Volume is substantially down from yesterday. The absence of economic data contributes to a lackluster ending to the trading week.

However, the Composite put in a late run to muster a stellar 2.5% gain for the week. Techs are really trying to end the year with a bang after getting battered in H1. Next week will see a more energized market action as a slew of economic data hits the Street. The sell off yesterday was a warning signal to Democrats: roll back the tax cuts on dividends and capital gains and watch the Big Board go red for days.

ADBE comes under pressure as expected, albeit in a civilized manner, which suggests that Wall Street does not view the departure of the CFO as a “clear and present danger”. Needless to say, I use the pull-back to snap up some more ADBE shares.

The folio does it again this week. It seems to have settled into a pattern where it beats the S&P and the Dow in weeks when the market ends up, but still manages to hold on to some gains when the market thumps. The Nasdaq is such a tough nut to crack when the market does well. Here are the gains for the week:

Nasdaq 2.53%
Worst-known 1.88%
S&P 1.22%
Dow 1.02%

No comments: