Friends
Today’s Fed official’s comments were a little less hawkish, so Friday’s decline and today’s preopening weakness vanished in a flurry of buying. All this nonsense will be put to rest for good come next week when the FOMC actually meets and decides whether to raise rate or not. The bearishness on the business media and social media from Friday’s downturn was stunning. But as mentioned, it appeared that Friday’s nervousness was erased in a single trading session.
By the close, the Dow Jones Industrial Average was up 239 points to finish the day at 18,325. The S&P 500 was up 31 points to close at 2159. Gold was down $3 to trade at $1,331 per ounce, while oil was up $.18 to trade at $46.07 per barrel WTI.
So basically, we have no idea if the Fed is going to move on rates next Wednesday or not, but at least we have some volatility to keep us entertained. The bears view stocks as vulnerable (high valuations and weak revenue growth), while the bulls look for every opportunity to pronounce TINA (there is no alternative). It is amazing that comments from central bankers seems to be the only thing that triggers movement in the bull/bear standoff. At least they have to keep quiet now until after next week’s announcement. What is a market participant to do?
Have a nice evening everyone.
