News from ARA MELKONIANS, week of July 19, 2009, #1

Good Morning Everyone and Happy Monday! Stock markets are flailing today trying to find some direction after a less than stellar showing last week. The Dow lost about 100 points last week, ending its streak of consecutive weekly gains. It doesn't appear positive corporate earnings are going to create the rally for which bullish traders are looking this time around. Earnings season kicks into high gear this week, so put your seatbelts on, it proves to be a wild ride for the next couple weeks.

The Wall Street Journal has an interesting article in Section C, page 2 about the future of mortgage rates and in particular Treasury yields. The article quotes several economists who suggest that the economy is going to suffer for a couple more years yet… Very interesting read.
The economic news that knocked the stock markets off their early morning rally comes from the National Homebuilders Association Index which came in at a weaker-than-expected 14, as analysts were looking for a reading of 16. This news comes on top of the disappointing Michigan Consumer Sentiment from last week. Apparently, we as a nation of optimists are getting less so as this recession wears on.

For now . . . have a terrific Monday and a very productive and prosperous week! As always, I welcome your insight and your feedback.