Daily Investment Interpretations

October 21, 2009

2009-10-21:  Today, the markets have adjusted downward a bit farther. The NASDAQ Composite lost 12.74 points, (-0.59%) to end at 2,150.73, the Dow declined 92.12 points (-0.92%) to finish at 9,946.36, and the S&P 500 subtracted 9.68 points (-0.89%) to 1,081.40. Oil hit a new high at $81.00 a barrel, while gold rose to $1,065. The VIX rose 1.32 to 22.22.
    It appears to me as though the markets are entering another pullback phase. If so, and if this drawdown were to be a clone of the previous dips, the S&P 500 should fall to about 1,050 before rebounding. But there are certainly no guarantees. If the markets start to tank, we'll have to stand ready to evacuate.
    The indices are now off 15%-to-1,8%. Now might be a good time to sell anything dicey.
    Master trader Todd Harrison has this to say about where the markets must eventually be heading: Market relativity and year-end trading tips. Mark Hulbert writes: A few letters now beat Oct. 2007 levels.