Friends
We had quite a reversal today in equities, as after a 100 plus Dow point early morning drubbing, stocks spurred on by comments from Boehner and Obama(and later WSJ rumors that the Fed may be ready with QE4 – yes it is almost laughable at this point) and rallied to a 100 plus point gain. That’s a tasty 200 point swing with no real news to justify it. Our expectation that every word uttered from political leaders would cause market turmoil, has very much occurred. Is it logical? Absolutely not! But logic is not involved at this point. Traders and algorithms are attempting to front run the “fiscal cliff” rumors on a daily basis, but that is hardly an investment plan.
Anyway, by the close the Dow Jones Industrial Average was up 106 points to finish the day at 12,985. The S&P 500 was up 11 points to close at 1409. Gold was down $22 to trade at $1719 per ounce, while oil was down $.49 to trade at $86.69 per barrel WTI. We’ve got the S&P back over 1400. Now let’s see how long we can hold it there.
With this volatility, the wise thing to do before year end would be to add to things that you would like to own on downturns, and sell a few things that you would like to get rid of on rallies. Other than that, just enjoy the holiday season. This too will pass.
Have a nice evening everyone.
