Donald Selkin Recovery Quotations

We made a good recovery off the April lows, but now we may need to move sideways and consolidate. Maybe then that will set us up for the typical November through January advance.

Right now business stinks, consumer confidence is down, the travel industry is suffering and the economic reports haven't been good and any economic recovery is going to be linked to the war. There haven't been too many first-quarter negative pre-announcements, but I'm still worried about corporate profits in the first quarter.

Friday's Dow movement shows that the market is in an uptrend. That's encouraging. The market is trying to anticipate a recovery before the economy.

With earnings winding down and not as much to focus on, you're getting very volatile reactions to economic numbers that are actually pretty close to estimates. You're also seeing some of the defensive names that are dependent on an economic recovery trading lower.

The market is adjusting to the fact that corporate profits may not be as high as was previously thought and that the economic recovery may move at a slower pace than it did in the first quarter.