Daily Investment Interpretations

October 1, 2009

2009-10-1:  The market indices crashed today. The NASDAQ Composite tumbled 64.94 points, (-3.06%) to end at 2,057.48, the Dow dropped 203 points (-2.09%) to finish at 9,509.28 and the S&P 500 shed 27.23 points (-2,58%) to end at 1,029.85. Oil fell to $66.68 a barrel, while gold closed unchanged at $1,001. The VIX jumped to 28.27.
    Bad as it was today, it still didn't carry the indices down to their 50-day moving averages. I mentioned on Monday that so far, this looks like another "buy the dips" rally. But three down days later, that assessment no longer looks so simple. The Halter Index of Chinese stocks has sent a "sell" signal, although the Cabot China and Emerging Markets' stocks are still looking good. In the meantime, I expect to see a "sell" signal from Top Stock Portfolios, although that hasn't happened yet.