General Market Comment: January 11, 2010
The market had a solid opening week for 2010. Market lore since 1950 is that the market goes on to rise for the year in over 86% of the cases if the first week is a gain. Keep in mind that the first week was a loss in 2009 and in 2008 so this indicator is not entirely reliable.
January is usually the best month of the year for the NASDAQ although it was down in both 2008 and 2009. Strong earnings reports this month should allow the rally to continue in the near term.
Earnings reports get kicked off this week however the largest number of reports will occur starting Jan. 18. There are at least 8 broker sponsored investor conferences this week headlined by the JPMorgan Healthcare conference. Needham also holds their popular growth stock conference this week. We will see a flood of analyst reports over the next 30 days.
We will keep our commentary short this week. I will add color as we get further into the earnings season. There has not been any material change to earnings estimates in recent days either in the broad market sense or in our names.