Daily Investment Interpretations
March 8, 2011
(Tuesday Night): Stock
markets rose today, though remaining well-embedded in their trading
ranges: U.S. stocks surge on bank-dividend hopes.
The NASDAQ Composite gained 20.14
to 2,765.77. The Dow climbed 124.35
to 12,214.38, while the S&P 500 added 11.69
to close at: 1,321.82. Oil ended the day basically
unchanged, at $104.61 a
barrel, while Gold slid to $1,427. The VIX dropped 0.84
points to settle at 19.82.
This article, News-Driven Markets: Our Favorite Ways To Play, discusses why the markets have been so chaotic over the past eleven trading days, and lists four strategies for dealing with this. (There have been days when just about every stock I could find has gone down.) It mentions the fact that the markets are being driven by computer-trading programs that, in turn, are driven by the scanning of news headlines.
The above chart of the NASDAQ Composite shows how the last eleven trading days look from a longer-term perspective. So far, the markets have trended upward, with two down days followed by two up days, though with dizzying downdrafts every fourth day. A similar pattern in November took a month to regain its original starting level.
Stock market futures are neutral tonight.