Daily Investment Interpretations
January 20, 2010
The indices fell today approximately as much as they rose yesterday. The
reason is political. Yesterday's election of a Republican Senator to replace
Democrat Ted Kennedy is being interpreted as a development that will strengthen
the dollar, which, in turn, has led to some short-covering of bets against the
dollar. And lately, the equity markets have moved down when the dollar has moved
up. The NASDAQ Composite lost 29.15
to close at 2,391.25, the Dow backed up 115.78
close at 10,603.15, and the S&P 500
gave up 12.19
to 1,138.04. Oil ended the day at $77.62 a barrel.
Gold doffed $27
to end at $1,113.
The VIX rose 0.33 to 18.68.
December home sales were disappointing: Builder stocks fall on FHA news, housing starts. Mark Hulbert observes what my advisory service has observed: that the breadth and continuing drift to new highs argues for still-higher highs ahead: New high data suggests new highs ahead. However, the World Bank today offered a sobering prospect for a second leg of a double-dip recession this year: World Bank worried about recovery.