Daily Investment Interpretations
August 6, 2008
Oil closed another dollar lower today at $118.58 on news that the U. S.
Petroleum Reserves have risen. The popular indices eked out modest gains today,
with the Nasdaq rising 28.54 points to 2,378.37, the Dow advancing 40.3 points
to 11,658.07, and the S&P 500 adding 4.31 points to close at 1,289.19. This
was in the face of quite bad news from Freddie Mac, which posted a loss of
nearly a billion dollars... much larger than expected. Today saw a continuation
of the advance that began on July 16th.
Meanwhile, the VIX fell to 20.23.
I interpret Todd Harrison to be saying that he expects a market rally into the November election, followed by a resumption of a bear market after the election, as the world's credit excesses unwind.