Friends
We mentioned that a counter trend rally might be in store for stocks and the Bank of England of all people/things, helped spark today’s much needed relief. That’s right the Bank of England said it would buy bonds to stabilize its financial markets. Instead of quantitative tightening like other central banks (with the Fed leading the way) they are turning back the clock to the good ole days of quantitative easing. Now, those good ole days were earlier this year, but I digress. Anyway, something was going to spark a very oversold rally, but I didn’t have the Bank of England reversing course back to QE on my bingo card.
For the day, the Dow Jones Industrial Average was up 546 points to close at 29,681. The S&P 500 was up 71 points to finish the day at 3,719. The Nasdaq Composite Index was up 222 points to close at 11,051. Gold was up $33 to trade at $1,668 per ounce, while oil was up $3.54 to trade at $82.04 per barrel WTI.
Bonds finally caught a bid with the first move back down in interest rates we have seen in weeks. So, at least for a day the bulls get a bit of a breather. It has been a very difficult month and a half for the bulls. Unfortunately, I can’t see how we are free and clear yet, but it is good to see that stocks actually can go up again. There’s still more wood to chop before we see the clearing but at least the bulls found an axe to wield. Today, anyway.
Have a nice evening everyone.
