Daily Investment Interpretations

October 13, 2009

2009-10-13:  After six up days in a row, the Dow and the S&P 500 ended the day down a trifle, while in a reversal of yesterday's close, the NASDAQ Composite ended the day up a trifle. The NASDAQ Composite closed up 0.75 points, (0.04%) to end at 2,139.89 (for all intents and purposes, unchanged), the Dow gave up 14.74 points (-0.15%) to finish at 9,871.06, and the S&P 500 is down 3.0 points (-0.28%) to 1,073.19. Oil ended up at $74.42 a barrel, while gold climbed another $8 to $1,065. The VIX was essentially unchanged at 22.99.
Intel exceeded analysts' expectations, suggesting that tomorrow's markets will rise. Intuitively, if this upsurge works like previous "waves", then it will go a little higher before there's a pullback. The problem is: once a pattern is discernible in the stock market, it generally doesn't last very long. More and more traders begin to "play the game", at which point, the pattern breaks down.
    Stock market futures are significantly elevated this evening.
    Michael Ashbaugh has written this,
U.S. benchmarks hesitate at the 2009 peak, today, concluding that unless that markets say otherwise, they're still moving up.
    Mark Hulbert offers this,
Mutual fund investors continue to favor bonds, and Peter Brimelow proffers this, Several letters see stocks having peaked.