Daily Investment Interpretations

April 12, 2011

2011-4-12 (Tuesday Night): Today, the markets went down for reasonable reasons: Stocks, oil take a pounding. The NASDAQ Composite slid 26.77 points (-0.96%) to 2,744.79. The Dow careened 117.53 points (-0.95%) to close at 12,263.58, while the S&P 500 lost 10.30 points (-0.78%) to close at: 1,314.16. Oil dropped to $106.02, while Gold fell back to $1,455 The VIX jumped 0.5 to  17.09. 
   Last night, I wrote: " I'm not seeing talk about a double-dip recession tonight, but surely, that's coming soon." Well, today was suddenly "Gloomsday": Recovery worry hits stocks. Mark Hulbert, who's been writing columns proclaiming the bull market, today wrote: History bodes ill for stock market. Another headline reads, • Gas prices expected to rise 40% this summer. (It turns out that the 40% rise refers to the average price of gasoline last summer versus the average price of gasoline this summer... not a 40% rise from here.) Michael Ashbaugh's Tuesday column is entitled, S&P 500 drops to major technical test. Brett Arends' Tuesday article is titled: Why Europe’s debt crisis isn’t over. Among the downers may have been reductions in the estimates for U. S. GDP growth in 2011: GDP estimates slashed, together with U.S. runs $188 billion deficit in March, Trade activity softens, Prices for U.S. imports jump, U.S. needs to cut deficit soon, IMF says, Small-business survey worsens, and Inflation stokes fears over shopper resilience.... all bad news appearing suddenly on a "down" day. There were two upbeat articles: Seize the moment on equities: Cohan and Bears, bugs still respect the bull.
    TopStock Portfolios asks: Bears Finally Finding Their Mojo?
    The S&P 500 index closed at its 25-day moving average after bouncing off its 75-day moving average at its mid-day low.
    Right or wrong, I'm treating this as an opportunity to back up the truck and load up on TNA (the Direxion Daily Small Cap Bull 3X Shares). (One fact that concerns me is that the chart pattern for the S&P 500 and the NASDAQ Composite doesn't look healthy to me.)
    Stock market futures are up a bit tonight.