Daily Investment Interpretations

May 20, 2011

2011-5-20 (Friday Night):  The market indices fell significantly today in response to European woes leading to a falling Euro and a rising dollar: Volatile ride in down week. The NASDAQ Composite dropped 19.99 points (0.71%) to close at 2,803.32. The Dow fell 93.28 points (-0.74%) to close at 12,512.04, while the S&P 500 lost 10.33 points (-0.77%) to close at 1,333.27. Oil rose a little to $98.99; Gold closed at $1,495. The VIX ended the day at 17.43. 
    Mark Hulbert explain that Bulls may head for the exits (audio). Other kindred articles include A shift toward defensive sectors, Three stock sectors to protect your portfolio, and Messages from the Russell 2000. Mark Hulbert adds that "Surveys of investors' moods throw off different indications, but actual exposure to the market appears even more bullish than these measures suggest." in War of sentiment indicators (video). Another article observes that "Stocks are caught in a tug-of-war between the bears, focused on weaker economic data, and investors more bullish on growth." in "Whipsawed? Get used to it (video)". 
    I'm struck by the bearishness of the general tone on Marketwatch right now... a very bullish sign. Bull markets don't end in a fit of gloom and doom.