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Monday Stock Trading Update - Global Markets Lack Conviction AS US Markets Remain Closed For Trading Holiday

Submitted by Mike Swanson on Mon, 2010-07-05 06:00.

US markets are closed on Monday July 5th for the July 4th extended weekend Independence Day holiday. This hasn't stopped foreign markets from trading though.

Shares in most European markets are down a bit today with the BRTSE FTSE down .3 percent, although Germany's exchange is up just barely.

Japan's Nikkei 225 stock exchange index is also up .75% while Australia's market is down .4%

The heaviest trading has taken place in China where the Shanghai Composite lost .8% to end at a 15 month low.

Many are predicting a rebound for the US stock market, which has fallen so hard the past few weeks.

S&P Chief Strategist Sam Stovall wrote a piece for investors saying that when the market falls bad in a quarter it almost always rallies the next quarter.

He notes that since the 1920's there have been 41 quarters in which the US stock market has fallen 5% or greater. Seven out of ten times that this has happened the stock market went up the next quarter.

Mutual fund managers are desperate to hear some good news and no one wants a repeat of the last bear market. Individual investors are also looking for such hopeful ideas on CNBC and Fox Business News where bullish pronouncements and ideas nourish an audience in need of hope.

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