Daily Investment Interpretations

April 14, 2009

2009-4-14:  The NASDAQ dropped 27.59 points (-1.67%) to close at 1,626, the Dow lost 137.83 (-1.71%) to 7,920, and the S&P 500 jettisoned 17.23 points (-2.01%) to close at 842. Oil slipped to $49.08, and gold backed off $3.80 to close at $892.00. The VIX remained essentially unchanged at 37.67.
    Michael Ashbaugh's Charting similarities to Nasdaq's '03 low concludes that "U.S. markets remain within a near-term uptrend, and the path of least resistance is higher."   
    Another technical advisory service to which I subscribe describes the markets as being currently overbought and primed for a correction, but advises that as long as the tide is running, go with the flow. Just tighten up your stops and be ready to jump ship when they turn around. 
    In Goldman Sachs: Green This Morning, Hurricane Tonight? and MV Weather Report: Earnings Tornando at Goldman?  , the authors note that Goldman Sachs might have buried its losses in the unreported month of December, allowing it to present good news now. In Permanent Link to Bush budgeting lives — at Goldman Sachs, Paul Krugman implies that this is exactly what Goldman Sachs has done.