Daily Investment Interpretations

September 1, 2009

2009-9-1:  Today, the markets plunged. The NASDAQ Composite fell 40.17 points, (-2%) to end at 1,968.89, the Dow dropped 185.68 points (-1.96%) to land at 9,310.60 and the S&P 500 dropped 22.58 points (-2.21%) to end at 1,098.04. Oil declined $1.91 to $68.20 a barrel, while gold added $3 to $957. The VIX moved up 1.27 to 26.03.
    Again, there was heavy buying in the last few minutes, but it was only enough to stop a free-fall. 
    The news today was all good. So why did the markets tank? Mark Hulbert examines this question in his columns today and concludes that it's because September has such a dismal reputation that it's become a self-fulfilling prophecy: Hulbert: Flimsy rationale, What's Working for September. Mark Hulbert also offers Who's got the hot hands. 
    Michael Ashbaugh observes in two articles today: S&P, Dow violate first support, Ashbaugh coaches defense, that the long-term trend is still up.
    The markets are off about 4% from their recent highs.