Daily Investment Interpretations

May 13, 2010

2010-5-13:  The markets tumbled today.  The NASDAQ Composite was down 30.66 points (-1.26%) to 2,394.36, the Dow gave up 113.96 points (-1.05%) to 10,782.85, and the S&P 500 subtracted 14.23 points (-1.21%) to end at 1,157.44. Oil fell to $73.94 a barrel, while Gold retreated 9 points to $1,234: In markets tug-of-war, gold holds the key. The VIX rose 1.29 to 26.80.
    The day started reasonably well: Weekly jobless claims fall 4,000 to 444,000; Weekly Jobless Claims Edge Down, But.... Matters were adjudged to be looking up in Europe: Calling Off The Funeral?. The dollar was rising (Dollar's rising) even as gold was falling. There were some neutral articles: Does the 200-Day Moving Average Really Matter?, Lessons learned from the 'flash crash', Keep your distance, Track volatility via VIX, and Weidner on confidence-trick markets. Stocks were steadily moving up.
    Then the bad news hit: Treasurys lower after 30-year bond sale
Portugal's turn to bite the bullet, China must hike rates or else, and U.S. stocks lapse more amid retail disappointment. The markets dove sharply, falling off a cliff about two hours before the close.
    By way of aftershocks: Market Medics: How long can markets rule?, and
Sell non-U.S. stocks on debt crisis: Wilmington.
    This kind of bad news and these kinds of bad days are part and parcel of equity investing. What's significant is the fact that the market indices are flirting with their 50-day moving averages.