June 8, 2009 (FinancialWire) (By Genevieve Hawkins) — Stocks rose last week despite Friday profit-taking on banks such as JP Morgan (NYSE: JPM) but with the rally already three months old, many investors are nervous to make bets on a move in any direction.

Last week the Dow rose 3.1%, while the S&P 500 increased 2.1% and the Nasdaq jumped 4.2% as so-so economic reports masked a rally that was more likely due to the weak dollar and oil’s continued rise. Although the S&P 500 has risen a meteoric 39% in the past three months, the rally is losing steam and may have been based on premature expectations about the current recession ending.

With few earnings reports expected in the near future, investors will instead pick through economic readings in the coming week including those on May retail sales, wholesale inventories, and consumer sentiment. Last week’s unemployment report provided a mixed signal on the potential for a recovery as layoffs lessoned but the rate jumped to a higher than expected 9.4%. The increase in unemployment likely reflected the addition of new college graduates to the statistic of those actively seeking full time employment. Figures for the coming week may be similarly mixed.

Although the rally should taper off, a weak dollar could create a fresh high for oil and oil stocks, leading the market up in the absence of any fundamentals. Sadly Wall Street is so unpredictable few investors trust these moves enough to try and make any money off them.

The Investrend Economics Calendar lists Treasury auctions 3&6-month bills (1 p.m.).

The Investrend Events Calendar showcases APEI, SNDK, ADI, CPLA at UBS Technology and Service Conference; SYNT, COVR, DDMX, PTC at Noble Financial Austin Power Brokers Emerging Growth Equity Conference; TM, HMC, NSANY, DCM at Merrill Lynch Samurai Conference.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 17 advancers versus 32 decliners and one unchanged. There were no significant advancers. Decliners followed Xoma Ltd. (NASDAQ: XOMA) down 10.17%, Cell Therapeutics, Inc. (NASDAQ: CTIC) down 7.39%.

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Investrend Website of the Day: http://www.theoceanproject.org/wod/

Quote of the Day: “Tip the world over on its side and everything loose will land in Los Angeles.” Frank Lloyd Wright

Today is: World Ocean Day.

Happy Birthday: Robert Schumann, Frank Lloyd Wright, John W. Campbell Jr., Francis Crick, Robert Preston, Jerry Stiller, James Darren, Barbara Bush, Joan Rivers, Boz Scaggs, Bonnie Tyler, Sir Tim Berners-Lee, Keenen Ivory Wayans, Kevin Farley, Julianna Margulies, Lindsay Davenport, Kim Clijsters.

Today in History: The volcano Laki, in Iceland, began an eight-month eruption in 1783, which eventually kills over 9,000 people and starts a seven-year famine. James Madison introduced a proposed Bill of Rights in the U.S. House of Representatives in 1789. Milton Berle hosted the debut of Texaco Star Theater in 1948. The first World Ocean Day was celebrated in 1992, coinciding with the Earth Summit held in Rio de Janeiro, Brazil. Charlton Heston assumed the presidency of the U.S. National Rifle Association in 1998.

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