Volatility Is Back

By The Simple Accountant:Financial markets were pulled in opposite directions last week, as earnings season went into high gear. Bulls had good profit reports from a number of blue chips to cheer them on, while bears had worrisome economic growth data to support their view. At the closing bell, there was no clear winner in the tug of war. Let's break down the numbers: Perspective

2012 featured more of the same from skittish investors. They shunned risk. Instead, anyone interested in equities stuck to blue chips. Stocks paying a decent dividend received plenty of attention, while smaller companies were virtually ignored. Hesitant, fearful buying defined the collective attitude toward equities. But something changed after the market began moving higher three months ago…

Pacific Financial Planners submits:

The energy sector certainly has the potential to kickstart the weak markets, but investors will need to watch for a number of key events outlined here by MoneyShow's Tom Aspray. Stocks moved lower last week, as the rally attempt on Thursday fizzled and stocks closed mixed on Friday. For some of the averages, it was the worst weekly loss of the past four months. The Spyder Trust (SPY) has declined for three out of the past four weeks, but is still only down 3.4% from the highs. The energy sector has the potential to fuel the next market rally.

Spencer Knight submits: The current rally bolstered many investors' optimism about the future. Careful investors could have seen this coming, as three strong companies showed the rally was coming before it began.

The Simple Accountant submits:We’ve seen an eventful week, with a sharp jump in oil prices driven by what amounts to civil war in Libya, a rally in Treasury bonds, and a selloff in stocks. After a string of humdrum weeks in which the dominant trend seemed to just roll on without an end in sight, we finally have some counter-directional movement. Now we have to review those trends to see whether they remain in effect. Week in Review

Energy Burrito submits: I am a sucker for Satchmo, so presently we are going to take a walk on the sunny side of the street.