Daily Investment Interpretations

June 29, 2009

2009-6-29:  The indices rose a little today. We're still in the last two days of the quarter, so that might have some impact upon what's happening. Wednesday will mark the beginning of a new quarter.
NASDAQ Composite ended the day up 5.84 points (0.32%) to 1,844.06, the Dow added 90.99 points (1.08%) to close at 8,529.38, and the S&P 500 tacked oned 8.33 points (0.91%) to end the day at 927.23  Oil hopped up  to $71.50 a barrel, while gold was unchanged at 941. Apparently, the recovery is back on. the VIX shrank 0.58 to 25.35, which marks another "new" low.
    In the meantime, the news is lugubrious, ominous, and that's good news for the stock market (although the VIX isn't showing much concern). And here are gloomy stories calculated to cast fear into the marrow of the optimistic investor.
Why the Golden Cross May Not Be Golden

MV Weather Report: Does Golden Cross Mean Stormy Skies Ahead?
    :Golden Cross" refers to an intersection in which the 50-day moving average rises up across the 200-day moving average. This happened last Tuesday, June 23rd. The only problem is that the 200-day moving average is still declining, so it's not clear that this "Golden Cross" points to a new bull market, as opposed to a bear market rally followed by further downside.
    My normally optimistic investment advisory service warns that the S&P 500 may forming a "head-and-shoulders" pattern typical of market tops.