Daily Investment Interpretations
March 1, 2011
The markets fell from the sky today. The NASDAQ Composite
to 2,737.41. The Dow dropped 168.32
to 12,058.02, while the S&P 500 sank 20.89
to close at: 1,306.33. Oil is at $100.28 a barrel,
while Gold registered a new high at $1,434. The VIX ended
the day up 2.66
points to 21.01.
Presumably, the markets nose-dived today because of Mideast tensions, and because the price of oil rose again, broachng the $100-a-barrel membrane: Oil back above $100. The USS Ponce and the USS Kearsage, with 400 (1200?) marines aboard, are churning their way through the Suez canal on its way to "the shores of Tripoli". The aircraft carrier, USS Enterprise, is on alert and is moving toward the Suez Canal, although it doesn't yet have orders to exit the Red Sea. (There might possibly be British forces also on their way to Tunisia.)
Most world markets have also dropped in response to the escalation in crude oil prices: Hong Kong takes crude hit, Japan stocks slapped, and Australian shares sag. If the indices are currently news-driven, it's hard to know what will come next. Intuitively, I would expect a morning bounce, followed by further declines, but if it depends upon knowing tomorrow's news, all bets are off.
Stock market futures are falling tonight, which isn't supportive of a morning bounce.
My personal suspicion is that Qaddafi won't be allowed to hold the world for ransom very long, but we'll see.