Daily Investment Interpretations

July 11, 2008

2008-7-11:  This was a wild day in the marketplace. At one point, the S&P 500 fell almost 28 points. Then it rapidly spiked more than 32 points, to fall back just as quickly, closing down about 14 points at 1,239.49. The Dow was equally rambunctious, opening at 11,229, dipping below 11,000, rebounding to where it started, and then falling again 128 points to close at about 11,100. Among the news items that spooked the markets was a rumor that Israeli jets have been practicing in Iraqi airspace (which would have to have occurred with U. S. approval), and the danger of a collapse of Freddie Mae and Freddie Mac, with 5 trillion dollars in loans on their books.
    The VIX reached 29.44 today but closed at 27.49. (The VIX at 29.44 is beginning to get into respectably high territory... not enough to mark real panic, but--possibly--setting the stage for a panic peak.)