Market Showing Strength

In an effort to determine market trends, I monitor 30 stocks on a monthly basis, and was shocked to see September’s numbers so high.  With the current strength being the strongest since February when 27 out of 30 showed an increase in value, I am baffled to see this month that 28 out of 30 stocks monitored showed an increase in value with the volatility of world affairs, and sweet crude around $95/barrel.  Since last month when 15 out of 30 showed positive increases and sweet crude was around $93/barrel, this is an obvious shift of market strength. 

Whether it be an increase in consumer confidence or inflated numbers from family vacations and back to school, seeing such an incline in market strength is a positive for our economy.  While not all the questions can be answered by these results, one must hope for this trend to continue.

Included in the list of stocks I follow, there is a wide array of industries including retail, construction, health care, consumer goods, food & beverage, along with others to establish a viable basis to determine market strength and trends.  Although the list only includes 30 companies, I believe it provides a sound base in order to provide enough evidence to make an educated determination of market strength and industry trends in a timely fashion.

Although there is a number of variables that control a stocks increase or decrease in value, I monitor sweet crude oil to determine the effects fuel prices have on a particular industry.  While we are all aware, when fuel prices increase in value, we usually notice a reduction in consumer confidence, and then see a reduction in stock value based on less spending of non needed items.  In addition, the longer the trend exists the harder the consumer confidence is to rejuvenate or restore to a respectable level.  Since peoples incomes do not fluctuate up and down as fuel prices increase and decrease, we are forced to alter our budgets and spend money more wisely.

Whatever the case may be for September’s trends, although it is still too early to tell what the following months will bring, I hope the trend continues.  While we can stand to see fuel prices fall to a more moderate level, with a continuation of positive market strength across all industries, we will ensure a strong and healthy economy.