Daily Investment Interpretations

Tuesday, March 18, 2009

2009-3-18:  The markets climbed again today. The NASDAQ added 29.11 (1.99%) to 1,491. The Dow tacked on 90.88 points (1.23%) to 7,487, and the S&P 500 increased 16.23 (2.09%) to end the day at 794. Oil closed at $49.17, while Gold subtracted $27.80 to reach $889.10. The VIX fell 0.74 to 40.06.   
    So what should we do here? Do we count on the markets' retesting their lows? Given the present perils of passage, I should think that it would be better to err on the side of being late to the rally rather than risk buying it near its top. 
    The following Minyanville articles give some opinions in this regard. 
Down with the Dow?
Op-Ed: Will Troubles Abroad Stop a Countertrend Rally?
Rally Into Summer?    
    Paul Krugman is evidently busy in Europe. He hasn't posted anything new for a few days, but he may have something more to say about "Yurp" when he gets back from there besides his recent Permanent Link to Spanish doldrums and A Continent Adrift.    
    I may buy the Proshares Ultra Nasdaq 100 ETF, QLD, tomorrow, with a stop set 6% or 7% below what I pay for it, as an insurance policy against a rising market. Another attractive alternative is the Proshares Ultra Emerging Market Fund, UUPIX. It closed tonight at $6.72, down from its 2-year high of about $74. First Solar (FSLR) and, perhaps, Suntech (STP) look good over the long haul, although they're struggling to stay afloat in the current climate. Powershares Wilderhill Clean Energy Fund (PBW) also looks like a good long-term bet.
    I'll try to update in the morning.