Daily Investment Interpretations
July 23, 2009
The NASDAQ Composite gained 47.22 points (2.45%) to 1,973.60, the Dow expanded 188.03 points (2.12%) to close at 9,069.29, and the S&P 500 added unto itself 22.22 points (2.33%) to end at 976.29 ... 24 points shy of 1,000. Oil ended the day up slightly at $66.68 a barrel, while gold added 24 points shy of 1,000. Oil ended the day up slightly at $66.68 a barrel, while gold added $2 to $955. The VIX fell negligibly 0.04 to 23.38, to close at its lowest level since September, 2008... slightly enough to, possibly, allow this rally to continue.
And yet again, there was dramatic buying in the last few minutes of the day. (Is this the "Plunge Protection Team" in action?)
This rise has been occurring on steadily rising volume. At the same time, volume hasn't been huge. It seems to me that this has been a bit of a stealth rally. Clearly, though, the markets have blasted through their resistance levels--950 for the S&P 500--and have broken out of their 2½-month trading ranges. The Cabot China and Emerging Markets Report is very upbeat about China, where the 200-day moving average is beginning to turn up. It would seem that it's become time to buy again. The question then becomes: what to buy? I won't be able to tackle that question tonight.