ONE – TWO - THREE O’CLOCK, FOUR O’CLOCK STOCK!

6/29/08 Sunday 7:24 PM CT

By Dave Harris

Rock and roll in the early 1950’s was the devil's music to some, mostly the southerners. Perhaps it’s also the devil responsible for the recent decline in stocks. What a horrible week for the Dow, the lowest it’s been in nearly 2 years at 11,346.51. The tech heavy Naz and the S&P 500 indices also had big declines last week. Oddly, the positive economic data hasn’t helped. There was higher personal spending and incomes last month. First quarter GDP grew by 1 percent and a little better than expected. Existing home sales are up too. But never mind all that, because the devil is in control for now.

The other big news (or not so big if you heard the analysts) was the central bank holding steady on interest rates. A key rate remains at 2 percent. Apparently inflation is again the Fed’s major concern.

Not much is on tap for corporate earnings, and the economic data in the week ahead is light. With the 4^th of July on Friday, it's a shortened trading week. The big employment report for last month is out Thursday. Investors will get a glimpse on hourly earnings, payrolls, etc. I’m betting it has the potential to provide the much needed upside to stocks should the readings prove favorable.

The banking sector, namely Citigroup (C) has got investors on edge. Oil cracking $140 a barrel and soaring energy prices can cut into consumer spending. What everyone wants to do is figure out a bottom in the market. I say don’t worry about a bottom. You’ll know it when these uncertain times turn around. When the gas prices come down, the housing picks up, and the retailers sound upbeat, you'll know it. There’s still going to be plenty of time to cherry-pick the cheap stocks.