As we approach the end of the first quarter of the year, and wait for the Crimean vote over the weekend (the outcome seems obvious), we will take a second to illustrate what we mentioned yesterday – 2014 is turning out to be much different than 2013. Last year at this time the Dow was up just about 11%. This year after 73 days, the Dow is down about 3%. Things have changed.
As for today, with traders not wanting to get too involved before the politically charged weekend, stocks drifted into negative territory and remained there throughout the afternoon. By the close, the Dow Jones Industrial Average was down 43 points to finish the day at 16,065. The S&P 500 was down 5 points to close at 1841. Gold was up $9 to trade at $1381 per ounce, while oil was up $.81 to trade at $99.01 per barrel WTI.
This week ended up being a victory for the bears, mainly fueled by overseas developments (China, Ukraine etc.). The bulls don’t seem to have a catalyst at the moment, but the bears need to capitalize on the global macro concerns while they can. Next week we’ll get a 2-day FOMC meeting and Ms. Yellen’s first presser. If the global situation calms down, the Fed meeting should be the item traders will focus on. After a bad week for stocks, we’ll see how next week unfolds.
Have a great weekend everyone.