Weekly Stock Market Newsletter, June 29, 2009

The Week Ahead: The sharp rise in personal savings has the stock market fearing consumers are socking away dollars for a long recession. The April Case-Shiller Home Price Index is released on Tuesday. The auto sales report and construction spending numbers are due by Wednesday. The employment report for the month of June will be reported a day earlier than normal on Thursday due to the markets being closed on Friday ahead of the July 4th holiday.

Stocks to Watch: Specialty retailer Chicos Fas Inc. (CHS) may have ended a long but substantial rise in its equity value from last November as the company gave a guarded outlook at an analyst meeting. Sanofi-Aventis (SNY) stock continued a steep sell off after concerns about the safety of its diabetes drug Lantus and its possible link to cancer. Robbins & Myers (RBN) stock fell after Q3 earnings were substantially lower than year ago levels with a 29% drop in sales and a lowered 2009 outlook.

Special Note: One of the key statistics in confirming bull market rallies is an expansion in volume as investors gain confidence as the market advances. Conversely, what the current market is showing is a persistent contraction in volume after peaking on April 2. This loss of upside momentum is more evidence of a bear market rally that is maturing as each day passes. More over, waning upside breadth between rising versus falling share prices adds to this argument.

Commentary Provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.

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