Daily Investment Interpretations

November 19, 2009

2009-11-19: The indices fell significantly further today. The NASDAQ Composite shifted down`36.32 points, (-1.66%) to end at 2,156.62, the Dow slid 93.87 points (-0.90%) to close at 10,332.44, and the S&P 500 skidded 14.9 points (-1.34%) to 1,094.90. Oil declin to $77.67 a barrel, while gold gained $1 to close at $1,142. The VIX fell 1.03 to 22.66.
    It looks like another dip is underway, with a marketplace that's reaching a broad maximum.
    The news that allegedly justifies today's declines is that job losses caused third quarter home mortgage foreclosure rates to break prior records. The news will now get worse and worse as the indices drop lower and lower.
    Paul Krugman is saying tonight that President Obama went on Fox News worried about the dangers of a double-dip recession if he doesn't reduce the deficit soon, whereas (quoth Dr. Krugman) the real danger of a double-dip recession will come if the Obama administration  doesn't reduce the unemployment rate. Although no one wants to boost the deficit, the deficit isn't out-of hand.