Daily Investment Interpretations
July 29, 2009
The markets fell today.
The NASDAQ Composite contracted 7.75 points (-0.39%) to 1,967.76, the Dow dropped 26 points (-0.29%) to close at 9,070.72, and the S&P 500 declined 4.47 points (-0.46%) to end at 975.15 ... 25 points shy of 1,000. Oil fell precipitously $3.88 to $62.93 a barrel, while gold dropped $12 to $930. The VIX climbed 0.6 to 25.61.
PIMCO's co-CEO, Mohamed El-Erian, said today that the stock market is on a "sugar high", fed by public debt. I think that the indices have been overbought short-term, and slightly overbought intermediate-term. A slight pullback is in order. And pullbacks are always accompanied by (and perhaps caused by) glum economic news.
Here's another thought-provoking article: China, U. S., Look Like Another Bubble in the Making. This article points to the wild and woolly moves by the Chinese government to stimulate its economy. Personally, I'm counting on the China and Emerging Markets Report to guide my footsteps in dealing with the Chinese and emerging markets stock markets.