Daily Investment Interpretations
April 18, 2011
(Monday Night): The markets
skidded off the road to day. Standard & Poors cut its long-term outlook for
U S. debt from stable to negative: Stocks sink after U.S. outlook slashed.
The NASDAQ Composite closed down 29.97
at 2,73538. The Dow plummeted 140.24
to close at 12,201.59, while the S&P 500 regressed
14.54 points (-1.1%)
to close at: 1,305.14. Oil rose to $109.39, while Gold
jumped to $1,487: Gold, copper prices raise the stakes for miners: Gold hits record; silver at 31-year high.
The VIX rose 1.64 to 16.96.
Unfortunately, today was the last day to file income taxes, and I had last-minute details to clear up, so I couldn't take time to update this website.
What are we to make of today's price plunge?
One Marketwatch pundit has written: Final stage of the bull market? He's arguing that the markets will either enter a final "blow-off" phase in which the major indices rise, in a final push, an additional 30% (to 1,700 for the S&P 500?) to 50% (to 2,000 for the S&P 500?), or they'll plunge to or below 1,250 on the S&P 500. The point is: they won't sidle sideways.
The TopStock Portfolios advisory service is more pessimistic, a position that seems to be in the cards, with market futures down sharply again tonight.