In a bear market, rallies generally get sold. Today, we rallied hard at the open and then sold off until noon. The market chopped its way higher for a short time and then chopped lower into the close. By the end of the trading day, the market was relatively flat or sporting modest gains.
Of note today, gold extended its gains by 2.1% at $1891.90 per ounce, but did elevate above the $1900 level today.
Oil prices also rose
It's just one day and we were certainly due for some weakness after the recent run-up, but today's action does not necessarily mean the bulls are ready to let the bears have their way.
Today the media seemed to blame today's weakness on comments from German Finance Minister Wolfgang Schaeuble, who stated that it was wrong to expect a miracle cure from this weekend's summit. As you may know, there's been talk for some time about a plan to solve Europe's debt crisis, but very little
Updated 10-18-2011 at 09:56 AM by coolhand
It was another early morning sell-off and just like the last two days stocks staged a comeback to trade around the flat line for a good portion of the trading day. But some last minute selling pressure pushed some of those averages into the red at the close. Still, the Nasdaq close positive so the bulls would appear to have won the battle again as losses were modest in the DOW and S&P 500.
Prior to the open, the December payrolls report
It looks that way. After tracking mostly sideways for days now, the market made a decided turn North today. And I can't argue with the charts either. Let's take a look:
NAMO and NYMO are now hitting fresh multi-week highs. They also remain on buys.
NAHL and NYHL are also on buys with NAHL in particular hitting fresh multi-week highs. NYHL is lagging a bit, but I won't argue with
After opening the trading session well into the red it took dip buyers less than 15 minutes to pile back in. In about an hour the broader market was back near the neutral line and from there chopped its way to a mixed close.
I'm not surprised by the dip buying. Many traders who found themselves on the sidelines as this market relentlessly pushed higher were looking for a buying opportunity. Any buying opportunity. And they finally got one today.