Daily Investment Interpretations
August 5, 2008
Oil closed today at $119.37 a barrel after falling as low as $118 a
barrel during the day, and the stock market took off. The Nasdaq Composite rose
64.27 points to 2,349.83, the Dow catapulted 331.62 points to 11,615.77, and the
S&P 500 treaded upward 35.87 points to close at 1,284.88. These advances
leave the Nasdaq and the S&P at new highs since this
rally began on July 16th.
By contrast, the VIX fell 2 points to 21.14.
This morning Michael Ashbaugh, writing at noon today, published his latest open-to-the-public technical analysis: "Markets run in place- Ashbaugh".
What happens next probably depends upon what happens to the price of oil. If it continues to fall, then we may see further improvements in the market indices.
Update: At 10 p. m., crude oil is currently $118.42 a barrel.
Airline stocks should also show sizable gains. Of course, , the unwinding of the credit crunch will still be hanging over u. Mark Hulbert has just published this: Mark Hulbert: Tuesday's rally wasn't as strong as it looked, and Todd Harrison has this to say about the current rally: Todd Harrison: Catching the rally before reality sets in.