Volatile Markets!
Market Talk on this weeks volatile trading {excerpted}:
"US stocks continued the week’s erratic trading, rising after {Wednesday’s} sell off and after {Tuesday's} rally, as investors absorb a raft of economic data and GM edges closer to bankruptcy, although it might finally have the bondholders on board.
DJIA jumps 104 (1.3%) to 8404, S&P 500 gains 14 (1.5%) to 907, Nasdaq Comp rises 21 (1.2%) to 1752. Big Board volume’s weak. Again, Treasury's market is the big focus; 10-year yield hits key 3.75% mark, rising as high as 3.76% actually, but later falls to 3.64%.
So, let’s see. {Tuesday} the Dow surged ahead about 195 points (confidence looks great!) {Wednesday}, it slid 173 (government debt looks scary!) Yesterday it rose 104 (well, gosh, some things look good and some things look bad.) What it really looks like is the pros are just playing games here.
Durables orders rise sharply. Initial jobless claims slide, but continuing claims strike fresh record. MBA reports rising joblessness is pushing up mortgage defaults
Every sector rises except consumer discretionary. Financials lead, aided by late rise. Energy up smartly as crude crosses the $65/barrel mark, which should be a concern for everybody else."
DJIA jumps 104 (1.3%) to 8404, S&P 500 gains 14 (1.5%) to 907, Nasdaq Comp rises 21 (1.2%) to 1752. Big Board volume’s weak. Again, Treasury's market is the big focus; 10-year yield hits key 3.75% mark, rising as high as 3.76% actually, but later falls to 3.64%.
So, let’s see. {Tuesday} the Dow surged ahead about 195 points (confidence looks great!) {Wednesday}, it slid 173 (government debt looks scary!) Yesterday it rose 104 (well, gosh, some things look good and some things look bad.) What it really looks like is the pros are just playing games here.
Durables orders rise sharply. Initial jobless claims slide, but continuing claims strike fresh record. MBA reports rising joblessness is pushing up mortgage defaults
Every sector rises except consumer discretionary. Financials lead, aided by late rise. Energy up smartly as crude crosses the $65/barrel mark, which should be a concern for everybody else."
Comment: I think most of this is market noise albeit with a bit more volatility. Market seems to be correcting by time instead of by price and could set the stage for another move up at some point between now and beginning of August. After that I think we could get dicey for a while. We continue to try to work on client allocations, invest in sectors we think will be attractive and find ways to repair positions ravaged by the bear market.
*Long ETFs related to the Dow, the S&P 500 and the Nasdaq Composite.
posted by CR English at 6:07 AM
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