Daily Investment Interpretations

May 21, 2010

2010-5-21:  Deeply oversold, the markets have staged a "dead-cat bounce" today. The NASDAQ Composite gained 25.03 points (1.14%) to 2,229.04, the Dow reclaimed 125.38 points (1.25%) to close at 10,193.39, and the S&P 500 mustered 16.1 points (1.50%) to end at 1,087.69. Oil remained essentially unchanged at  $69.84 a barrel, while Gold pulled back to $1,177. The VIX rose 5.69 to 40.10. 
My investment advisory service has anticipated this, predicting that today, Monday, and, maybe, Tuesday, the markets will snap back. But the problems that caused this disenchantment won't go away, and by the middle of next week, the force of gravity should take hold again.
    Mark Hulbert writes about What Dow Theory says about the sell-off, and Chuck Jaffe warns us: This fund's a winner, but not for investors.