Road Map for the Rest of 2011

Wall Street has been incredibly focused on the short term. That's why we saw
such wild swings in the month of August. When you focus only on what's
happening right now, you lose sight of the big picture and where the biggest
money can be made. That's why investors want to use this opportunity to lay
out a road map for the rest of 2011 and prepare for volatility, profit
opportunities and anything else the market has in store. Mile Marker 1: Trading
Volumes The first thing we can expect is for trading volumes to pick up. This
happens every year as Wall Street professionals return from their long summer
hiatus. And what we really need to see happen at this time is a drop in the
Chicago Board Options Exchange Market Volatility Index (VIX). This index does
exactly what it says: It measures the level of volatility in the markets. As
investors return to the market, we'll see this level drop, which will attract
even more investors, and that's when I expect volumes to really increase.
Later in the month, we'll also get a "window dressing" volume surge as
professionals scramble to make their portfolios more attractive before the end
of the quarter. So it's possible we might see another quick nine-day rally
like the one that took place in June at the end of last quarter. Investors
aren't eager to repeat the mistakes they made this summer and will be looking
for stocks with strong earnings and solid growth prospects. Let's face it:
Most stocks look like a bargain right now, but the only way to know for sure is
to look at the numbers, and investors are going to look at earnings. S&P 500
companies are in their 10th consecutive quarter of exceeding analysts'
expectations. That is another reason why I expect investors to benefit the most
when volume returns in the coming weeks. Mile Marker 2: Retail Sales to Rise
Moderately It was just a few months ago that rising food prices were causing
protests, riots and social unrest around the world. With food prices on the
rise, consumers had less money to spend on other goods and services, but food
and energy prices have settled and will continue to moderate in the coming
months. Specifically, I expect crude oil prices to consolidate now that Labor
Day and the summer driving season are over; this will help put more money in
consumers' pockets. The result will be an increase in retail sales, which,
overall, will continue to slowly but steadily rise especially for
"must-have" consumer items. One stock capitalizing on this trend is the
company that does it best, Apple (NASDAQ: AAPL ). Apple's iPhone 5 is due to
arrive in stores in just a few weeks ( Some rumors say as late as mid-October ).