There I go again. I express a little concern about some froth in the market and stocks tumble the next day. Ok, believe me, I have no edge. It just seemed like given the less than good news that the markets are having to deal with that some of the moves we were seeing in certain stocks were not sustainable. These pull backs serve a purpose though, as we have mentioned. Big gaps to the upside usually lead to some retracing to fill in those gaps. Again, it helps to sit back and let a big meal be digested.
As for today, by the close the Dow Jones Industrial Average was down 710 points to finish the day at 25,445. The S&P 500 was down 80 points to close at 3,050. Gold was down $5 to trade at $1,770, while oil was down $2.58 to trade at $37.79 per barrel WTI.
It was a broad based selloff today as both recent rising stars and laggards tumbled lower. We’ve seen stocks react to the virus situation for months now. When the reopening was on everyone’s lips, not to mention visions of vaccines and therapeutics, stocks moved higher. As virus concerns returned, as they did a couple of weeks ago and again this week, stocks become susceptible. But, stocks seem to catch a bid rather quickly after these retreats as, once again, the Fed’s liquidity seems endless and with interest rates at zero there is really nowhere else to go with investment dollars. Let’s see if the bears have something going or will the bulls be ready with their buy tickets tomorrow morning.
Have a nice evening everyone.