Perhaps it was inspired by a meeting currently in progress at Jackson Hole, WY, or more to the point, by a perceived Fed rescue, but whatever the reason today's action caught the bears off-guard as a seemingly innocuous open turned into a full blown bullish assault that saw the major averages post hefty gains across the board. At the close, the DOW had rallied 2.97%, the Nasdaq 4.29%, and the S&P 500 3.43%.
During the course of the rally
The dangers of trying to pick a bottom are obvious in a bear market - but here's the problem with not trying to pick a bottom. Remember this time last year? Market pops on Sep 1 and the boat left without the bears. It wasn't until November that there was any real opportunity... unless you chased.
Yesterday we saw another early morning rally fade quickly. The 200-point rally turned into a 37-point gain in the Dow by the close as either buyers shied away, or sellers stepped in. Volume was very light again as vacation time gets into high gear.
For the TSP, the C-fund added 0.02% yesterday, the S-fund slipped 0.13%, the I-fund was up 1.06%, and the F-fund (bonds) lost 0.12%.
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
08/22/11 After Thursday's 420-point bloodbath, stocks could not hold onto an early Friday rebound as the morning rally ran out of steam pretty quickly, and the Dow closed down another 173-points. For the TSP, the C-fund lost 1.50% on Friday, the S-fund dropped 1.73%, the I-fund fell 1.79%, and the F-fund (bonds) slipped 0.06%. For more on the weekly and monthly