It's Been 3 Weeks and the Market Hasn't Moved

It's been three weeks since I last blogged. My last post stated that the Dow was at 10,000. Coincidentally, the market has just crossed the 10,000 mark again. So what happened to make the market stand still? We have had a mix of news with earnings, outlooks, and economic conditions that have all moved the market in one way or another.

Earnings have been doing well so far this quarter. Most companies are seeing sequential improvements, although, year over year numbers are still down. A lot of optimism for improvements is being expressed for 2010. The only questionable area of optimism is with consumer discretionary. Consumer sentiment did fall as did expected holiday sales.

Economic conditions remain cloudy. The Fed is keeping rates low suggesting a slow rebound in the economy. Manufacturing output has increased suggesting a little bit of improvement from the recession. Unemployment is set to rise again.

The market can move on anything. Going forward, the thing we will have to look at the closest is economic conditions. It will get easier for companies to beat last year's earnings. It is the Fed and economic signals that will give away where we are headed. Cash money lies in the midst of these things. Separate the news from the noise and you will find where to invest next.