Daily Investment Interpretations
March 25, 2011
(Friday Night): The markets
rose a little more today in a way that points toward a not-unexpected down day
early next week: Bulls
have the bears' number. The NASDAQ Composite increased
to 2,743.06. The Dow gained 50.03
to end at 12,220.59, while the S&P 500 incremented 4.14
to close at: 1,313.80. Oil ended the day at $105.52 a
barrel, while Gold closed at $1,430. The VIX fell to 17.09.
The chart above shows how this retrenchment looks in relation to other ups-and-downs over the past year. The S&P 500 has successfully broken through its resistance at 1300 but has bounced down from 1320. It's now up 70 points from its low, with the potential for, perhaps, about 40-to-50 additional points of "upside potential" to catch up with its bullish trend line. Of course, presumably, it will then continue to rise, albeit at a slower pace.
The catalyst for today's market rise was probably the fact that last year's 4th quarter GDP was revised upward to 3.1%: GDP: An even higher all-time high.
There are two commentaries on inflation from Fed members: Consumer-sentiment index falls in March and Plosser: Funds rate should hit 2.5% in year.
Right now, I'm investing in the 2X S&P 500 ETF, SSO, to take advantage of the presumed stock market rebound. (I sold my position in SSO this afternoon in anticipation of a possible temporary market reversal on Monday morning, but I'll play it by ear on Monday, buying it back if the market moves up.)