Daily Investment Interpretations

July 28, 2008

2008-7-28:  Today, the Nasdaq Composite dropped 46.31 points (%) to close at 2,264, the S&P fell about  23 points ( %) to end the day at 1,234, and the Dow shed about 240 points ( %) to 11,131. The VIX jumped 1.32 points to close at 24.23. The immediate causes for these declines in the indices are renewed problems with financial institutions, a rising oil price (because of geopolitical tensions associated with Nigeria and Iran), and unpleasant earnings surprises. 
    Michael Ashbaugh's July 28th column, written this morning before the markets took today's dip, is entitled "S&P 500 teetering around the March low" (unavailable to the public), while Peter Brimelow has written, "Peter Brimelow: Martin Pring outlines technical support for optimism". Martin Pring observes that a 30-year-record 27% of all equity money is sitting in money market funds on the sidelines waiting for the next bull market. Meanwhile, another technical advisory newsletter I receive, also written before today's action, cites pessimism at a very high level, and predicts a bull market running through the end of the year.