Daily Investment Interpretations
January 19, 2011
(Wednesday Night): Stocks
pulled back today, with the NASDAQ Composite falling about 1½ %, the
S&P 500 shrinking about 1%, and the Dow only retreating about 0.1%.
(The only reason the Dow didn't drop more was because IBM posted
outstanding results, and rose sharply, helping to offset declines in the
Dow's other 29 components.) The
NASDAQ Composite lost 40.49
to 2,725.36. The Dow fell 12.64
while the S&P 500 dipped 13.1
to close at: 1,281.92. Oil closed at $90.75 a
barrel, and Gold ended at $1,369. The VIX was
unchanged at 17.31.
So what should we do next? The only reason to sell would be to hope to pick up the same investments at lower prices late, and for me at least, that's never worked. Then, too, so far, this is just a one-day blip. There was very heavy buying going into the close today. Market futures are up slightly tonight. The markets are certainly overbought, and there's certainly a high level of complacency in the media, but money continues to pour out of bonds and into stocks.
We'll see what happens over the next two or three days.
Mark Hulbert writes: Full crash recovery for some advisors..