WILL THE BEARS TAKE ALL THE HONEY OUT OF THE MARKET AND NYX?

Monday, July 30, 2007
WILL THE BEARS TAKE ALL THE HONEY OUT OF THE MARKET AND NYX?


It looks like NYSE EURONEXT might have hit a sweet spot today leading up to it's second quarter earnings report on August 2nd at 2:00AM . Finally NYX seems to be moving up. You can literally almost hear a sigh of relief coming from the NYX finance message boards. However, there is still some general anxiety about this week for the market as a whole. Just in time for the earnings report that everybody can not wait to see, this week may hold some disturbing realities for our entire market. Will the sub prime bears come to take away the honey from Goldilocks and NYX ? Or, will the nurturing stability of Goldilocks provide an environment where NYX, with a good earnings, can reach it’s potential ?

If the market this week ends up like last weeks debacle, NYX may not reach much higher than the range we have been familiar with for months. If earnings are below estimates or just meet expectation in a market like we saw last week, NYX may yet get a beating from some of it’s most loyal shareholders who will have surely been bruised by another upset. Some analysts are saying that the market will take a turn for the worse unless Fed Ben Bernanke lowers rates to help fix the housing market and eases peoples fears so that they will feel more comfortable with equities. Some say we are simply overdue for a nice sized correction. If the sell off continues this week, NYX will most likely not see it’s potential gains met. The state of the greater economy may adversely effect NYX’s earnings report. Are we just being paranoid or could our worst fears come true? Just when NYX turns around will the market beat it down? After a day like today those fears may be unfounded.

After a horrible sell off last week, today’s gains may give many investors reason to calm down. Today's earnings reports of many of the biggest companies were all extremely positive for the most part. China showed strength for the seventh session in a row and Europe showed mixed but mostly strong numbers. This is seen as the fuel that will bring people back to buy well priced stocks. We could see great strength in the market leading up to NYX earnings. The timing at the end of the month and all the positive earnings reports could pave the way for NYX to flourish. It looks like NYX may finally have its day.

One thing that everybody can agree on is that this week is going to make or break NYX. Much of this counts on the environment which the market provides us. If it is an inviting environment we may see NYX skyrocket. If the environment is harsh last week may have just been the beginning for the bears. Only time will tell what NYX has in store for it now. We will keep you posted.

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