Friends
Markets around the world got the news they wanted out of the German Courts, and it was “risk on” again, for one day anyway. Stocks in the U.S. were up at the opening and spent the rest of the day inching higher. The Dow Jones Industrial Average was up 275 points and the S&P 500 was up 33 points to finish the day at 1198. In the short run, it is encouraging that the S&P 500, after trading under 1140 on Tuesday morning, has been able to bounce off slightly higher lows each time down recently. It will be interesting to see if we can hold this momentum into tomorrow nights “jobs” speech by the President. We’ll see if the bulls can move stocks above the 1200 level tomorrow which seems to be becoming our pivot point.
Gold was down right from the start this morning, and by the afternoon was trading near the $1818 level down $54 for the day. Oil rocketed up over $3 for the day to close above $89 per barrel. Oil seems to be in a trading range between $81 and $89 WTI, and gold will be watched to see if, in the short run, a double top has been formed, as some traders hinted at during the day.
Well, for one day, we broke the lousy trend that began the month of September. The problem lately has been that it is very difficult to get comfortable with moves in either direction. Just when you think you have it figured out, something changes overnight to make sure you don’t get too set in any direction. The best thing for individuals to do is to make sure you define your risk. Once that is done, the day to day volatility becomes much more tolerable, and actually provides opportunity.
Have a nice evening everyone.
