Daily Investment Interpretations

July 23, 2010

2010-7-23:  Stock markets rose again today, bumping against resistance  The NASDAQ Composite added 23.58 points (1.05%) to finish at 2269.47. The Dow gained 102.32 points (0.99%) to close  at 10,424.62 (Dow within 4 points of erasing 2010 losses), and the S&P 500 regained 8.99 points (0.82%) to end at 1,102.66. Oil ended at $79.05 a barrel, while Gold closed down at $1,187. The VIX fell 1.12 to 23.51.
 
   Tonight is Friday night and the commentators have gone home for the weekend. All we can say is that the markets closed a little higher tonight than they have for the past month: Stress tests: Seven failures, and Stocks hot after stress test..
    If this has been simply a correction and stocks resume their upward march, it would mean that the global stimulus has been sufficient to re-ignite the global economy, and it would call for a rethink concerning who's right and who's not. But tonight, all we can do is wait and see.
    It may be worth knowing that 70% of all the trading that takes place on Wall Street these days is high-frequency (computer-enacted) day trading. It may also be  worth knowing that news organizations such as Reuters offer high-priced, special information news services for large-scale investors, whose computers automatically evaluate the news as positive or negative. This would seem to me to offer the potential for manipulating the markets by feeding slanted information to these computers, with principals at the news agencies having already bought or sold before releasing their privileged information to their clientele.