Friends
For the 4th day in a row, we had a move of over 400 Dow points. That is a record. This time we were back up with the Dow Jones Industrial Average closing up 423 points, after being up as much as 540 points, to finish the day at 11,143. The S&P 500 closed at 1172. The support and resistance levels are being violated so quickly, it is hard to even define them. The volatility is just amazing with the high frequency traders (HFT’s) and their machines setting a torrid pace.
Today’s direction seemed a bit more logical. The 30-year Treasury Bond auction was just awful, which seems very logical to me. Who would want a 30-year piece of paper at less than 4%? On the other hand, stocks, with their juicy yields, found some support today. Gold was down $27 to end the day at $1757 per ounce, and oil unfortunately is climbing back up with WTI ending the day at $85.54 per barrel. The picture changes so quickly, it is next to impossible to determine where prices will be in three to six months.
The picture in Europe gets more confusing every day, but there is hope that the Germans and the French will get together to begin to deal with the problems head on and stop “kicking the can down the road”. Of course, we will continue to have to deal with this problem for quite some time, hence the growing pessimism about global growth in the near future.
We’ll see what tomorrow brings, but unfortunately, the way the week is going, we are likely scheduled to go down. Hey, maybe we can break the pattern.
Have a nice evening everyone.
