Daily Investment Interpretations
February 5, 2010
The markets fell deep into bear country today, but then rallied sharply
toward the end of the trading day, closing up for the day. Wall Street swinging back:
. The NASDAQ Composite climbed 15.69
to close at 2,141,12, the Dow rallied 10.05
close at 10,012.23, and
the S&P 500 advanced
to close at 1,066.19. Oil fell sharply to $71.42 a barrel.
Gold fell $10
to end the day at $1,054.
The VIX climbed 0.03 to
Dow reclaims 10,000
Dollar extends gains
Jobless rate below 10%
Jobs showing signs of life
Data don't tell us what we want
One of my investment advisory services suggests that the current contraction is a correction in an ongoing cyclical bull market rather than the beginning of a new cyclical bear market because of technical indicators that have indicated something other than a bull market top. Still, no one can be sure. The advisory service thinks that this is the first leg in a two- or three-stage market correction. If so, there will be better buying opportunities ahead.
The S&P 500 penetrated the 1,045 level today, which, at -9%, puts it close to a 10% correction. (This would occur at 1,035.)
The dollar continued its rise today because of a flight to the relative safety of the dollar (along with some further unwinding of the dollar carry trade, as nervous hedge-fund traders who bet against the dollar sold stocks to cover their bets against the dollar.).