Friends
Stocks continued their volatility with today’s movement to the upside. Stocks began the day with a nice advance, as traders interpreted the weak CPI number as a green light for more Fed accommodation. Oh boy, that’s exactly what we need, more of what hasn’t worked to this point (again, bad news is good news nonsense). The only thing that the Fed’s easy money has done is help stock and commodity prices, but each time with diminishing returns. Anyway, Dr. Bernanke and the world’s central bankers are who they are.
At 2:00, our time, a rumor hit the tape that European Central Banks will coordinate to supply “easy money” in case the Greek elections this weekend go in a bizarre direction. That sent stocks soaring higher (love more cowbell), with the Dow rising 200 points. At the close, the Dow Jones Industrial Average eased into a 155 point gain at close at 12,651. The S&P 500 was up 14 points to finish the day at 1329 (a little above resistance, but can we hold tomorrow?). Gold was up $6.30 to trade at $1625 and oil was up $1.64 to finish the day trading at $84.26.
Expect more volatility tomorrow as traders decide whether they want to be long or not going into the weekend of the Greek elections. We’ll let you know how the week finishes.
Have a nice evening everyone.
