Cautious approach

August 28:

Monday’s fall at NY and Nasdaq stock market was said due to the ongoing slowdown in US housing market, which clearly gives a message out to stock investor about the consumer’s credit deficiency. This concern was clearly seen in stocks like banks, mortgage lenders and other financial stocks which losses their ground after the last week pullback.

Also the additional concern came from increasing rising inflation which added more worries among stock investors, which might impact the economy. At this point, it looks like the investor are more cautious on taking any fresh position except for some selected stock pick and will wait until for next trigger, such as upcoming economic data and what Fed’s will do next.

At this situation I definitely would like to take a short position at every 50 to 100 point rise in Dow Jones and would avoid any stock investing.

The Dow Jones industrial was down 56.74 points (0.42 %) at 13,322.13. The Nasdaq Composite Index was down 15.44 points (0.60%) at 2,561.25.