Daily Investment Interpretations

March 7, 2011

2011-3-7 (Monday Night): Stocks closed down for the day, moving close to the bottoms of their trading ranges: A volatile day (video). The NASDAQ Composite was hit the hardest, falling 39.04 points (-1.4%) to 2,745.63. The Dow declined 88.32 points (-0,72%) to 12,169.88, while the S&P 500 subtracted 9.52 points (-0.74%) to close at: 1,3321.15. Oil ended the day at $104.42 a barrel, while Gold slid to $1,433. The VIX tacked on 0.46 points settle at 19.06
    So far at least, the market indices have risen and fallen within a trading range, consistent with a period of consolidation. Will Libya will sooner or later lose its status as the world's focal point? With the market indices dependent upon the vagaries of the news and computer-driven trading systems, The better part of valor may be to wait for this range-bound trading to resolve either up or down. Trading in the midst of this is challenging.
    Bullish on large-cap stocks "Advisers are far more upbeat about the market‘s prospects than they were six months ago." Money
    Rex Nutting has written a surprising (to me) article: America is still No. 1 in manufacturing.
    Stock market futures are up about ⅓ % tonight.

2011-3-7 (Monday Afternoon): As unsettling as is today's market declines, stocks are (so far) trading within their trading ranges as oil backs away from $107 a barrel to $105 a barrel.

(Sunday Night):
   Oil is at $106 a barrel and climbing tonight, while U. S. stock futures, and Asian markets are down and falling. This price boost is most likely hedge funds and other traders "piling on" in the oils futures market. But the last time the speculators took over, oil went to $147 a barrel before the speculation ran its course. At the same time, this price gouging could elicit dramatic responses from the international community. But right now, the trend for stocks is down.