Daily Investment Interpretations

May 18, 2010

2010-5-18:  The U. S. markets closed down again today, but closed above their may 7th low of 1,111. The NASDAQ Composite fell 36.97 points (-1.57%) to 2,317.26, the Dow tumbled 114.88 points (-1.08%) to 10,510.95, and the S&P 500 stumbled 16.16 points (-1.42%) to end at 1,120.78. Oil rose to $69.33 a barrel, while Gold retreated to $1,223. The VIX fell 2.71 to 33.55.  
    Tomorrow could tell the tale regarding whether the markets are going to pass or fail their retest of their May 7 low (and futures are down nearly 1% tonight). If the S&P 500 fails to close above 1,111 tomorrow afternoon, it will probably signal a steepening fall in the markets.
    Paul Krugman points out that a falling Euro may actually benefit the U. S. recovery over the short term by lowering oil prices and interest rates: Permanent Link to Negative Linkage.  
    Paul Farrell writes: 12 ways to cash in on the 'collapse of Eaarth'
    Mark Hulbert writes about the Consequences of heavy volatility. His conclusion: there aren't any correlations between market volatility and the future direction of the stock market. (Last Friday, he wrote that advisors were bearish than after the "Flash Crash": Wall of Worry.)