Friends
Counting Friday’s half day of trading, we now have a three day downward move in stocks for the first time in a while. Buyers seemed uninterested once again today, as stocks opened down and stayed in the red for the entire session. I would not read too much into why it is down. For goodness sake stocks were up for eight straight weeks. I do think that some confusion has set in, as market participants are not sure whether to be rooting for good economic news or not. If the jobs report is good on Friday, the taper tantrum crowd may rear their ugly heads once again. As always, we contend that good news is good news despite the fact that bonds will sell off and stocks may also sell off in the short run. A price that investors should be willing to pay to form a strong economic foundation that stocks can be supported long term on.
As for today, the Dow Jones Industrial Average was down 94 points to finish the day at 15,914. The S&P 500 was down 5 points to close at 1795. Gold was mostly unchanged to trade at $1221 per ounce, while oil was up $2.30 to trade at $96.12 per barrel WTI.
There doesn’t seem to be too much concern among market participants about the dip in share prices over the past three sessions, but if it were to gain some momentum and last through the week, my guess is that a different feeling may start to develop. Let’s see if the bulls can rally the troops and take back the high ground to hold into year end.
Have a nice evening everyone.
