Daily Investment Interpretations

September 16, 2009

2009-9-16:  The major market indices have now climbed for 8 days out of 9. The NASDAQ Composite vaulted 30.51 points, (1.45%) to end at 2,133.15, the Dow leaped 108.3 points (1.12%) to finish at 9,791.71 and the S&P 500 added 16.13 points (1.53%) to end at 1,068.76. Oil moved up to $72.45 a barrel, while gold rose $14 to close at $1,020. The VIX increased 0.27 to 23.69.
   
Michael Ashbaugh argued this morning that the S&P 500 teeters on verge of a breakout. By tonight, that breakout had happened. The next line in the sand, according to Mr. Ashbaugh, is 1,106, or about 37 points above where the S&P 500 stands tonight.
    This article, Shares look to pent-up demand, attempts to explain this run-up. (This has been a pretty strong move.) Apparently, there's still a lot of institutional money sitting on the sidelines. At some point, performance anxiety has to set in as we approach the end of the third quarter.