Friends
As I mentioned the other day, everyone seemed to be bored with the lack of movement that we saw in stocks during the month of August. Traders were looking for a little action. Well, as the saying goes “be careful what you wish for.” After Friday’s mess, stocks rallied back nicely yesterday only to head right back down today. Seasoned veterans (ok, old guys like me) would rather have seen the selloff continue on Monday, and get a reversal today (good ole turnaround Tuesday), but of course we have to deal with what we get. Market pundits on the business channels will try to read anything and everything into this new found volatility, but I would be careful not to read too much into it just yet.
By the close, the Dow Jones Industrial Average was down 258 points to finish the day at 18,066, wiping out all of yesterday’s recovery. The S&P 500 was down 32 points to close at 2127. Gold was down $3 to trade at $1,322 per ounce, while oil was down $1.30 to trade at $44.99 per barrel WTI. Probably more importantly we are seeing bond yields back up, which some assumed would never happen.
Negativity is raining down upon the markets, as since coming back from the Hamptons traders seem to be in a very suspicious frame of mind. Worries of the lack of effectiveness of our Fed and central banks around the globe are permeating the investor psyche. Things sure aren’t boring all of a sudden. Stay tuned.
Have a nice evening everyone.
