Friends
Failed rallies are a signature of a bear market. Though we haven’t seen many so far this year, when we have gotten a rally it is quickly met with more selling. Once again, oil was pointed to for today’s failure as a 200 point early Dow gain quickly dissipated once oil fell back into negative territory for the day. It appears that until we get some sort of calm in the oil markets, stocks will continue to be very jittery.
By the close, the Dow Jones Industrial Average was up 27 points to finish the day at 16,016. The S&P 500 was up 1 point to close at 1881. Gold was down $3 to trade at $1087 per ounce, while oil was down $1 to trade at $28.42 per barrel WTI (ugh).
Just an update on the status of this stealth bear market, the average stock in the S&P 500 is now down 25% from their 52 week high. Yes, that is a bear market. Once again, failed rallies are just part of what happens in a bear market cycle. Remember during the bull run it was buy the dips. We’ll get through this cycle, but what we want to be looking for is early morning selloffs being bought (instead of vice versa), and stocks rising even after bad news (signifying that there is no one left to sell). Let’s see how this earnings season starts to play out. Stay tuned, we’ll keep you up to date.
Have a nice evening everyone.
