Daily Investment Interpretations

May 17, 2011

2011-5-17 (Tuesday Night):  The NASDAQ and the S&P 500 indices ended the day essentially where they started it, but the Dow fell by 68.79 points. The NASDAQ Composite rose 0.90 points (0.03%) to close at 2,783.21. As mentioned above, the Dow lost 68.79 points (-0.55%) to close at 12,479.58, while the S&P 500 fell back 0.49 points (-0.04%) to close at: 1,328.98. Oil rose a little to $97.78; Gold closed at $1,491. The VIX fell 0.69 (!) to 17.55. 
    Stocks are oversold and due for a technical bounce. And the headlines are predicting doom! Dr. Irwin Kellner is warning: Donít be fooled by the money illusion. David Weidner warns: Beware if this market goes off its meds . SmartMoney writes about The invisible stock bubble. Mark Hulbert notes that Low-quality stocks still lead, that the Fed's easy money is allowing junk stocks to outperform blue chips at a time when the blue chips should be leading the markets, and that sooner or later, small stocks will fall while big caps rise: "Indeed, according to Grantham, he is hard pressed to find other times in U.S. stock market history when quality (large-cap value) has been as undervalued as it is today, relative to junk (small-cap growth)."
    Then there's How far will home prices fall? and Fund managers in a gloomy mood. Surely it's time to sell all our stocks and switch to cash ahead of the second dip in this Great Recession!
    Michael Ashbaugh observes that S&P, Nasdaq challenge the 50-day average.
    Stock market futures are up tonight..