The technical picture improves - Stocks rallied on Friday, following through on Thursday's positive reversal day. The Dow gained 62-points on the day, but the broader indexes did even better - particularly the small caps... Market Commentary for 2/26/11 Current Daily Market Commentary
Last weekend, I noted that the herd had sold about 11.5% of their stock holdings going into the new week. The Top 50 had dipped too, but not by as much. Then the market promptly took a moderate nosedive.
This coming week, we have gotten more defensive in some pockets.
The Top 50 lightened up much more after last week's decline. About 19% was taken from stocks and shifted to the F and G funds.
Finally, a real pullback After nearly three months of virtually straight up action, the stock market took a break last week caused by the unrest in the Middle East and some mixed economic reports. The price of oil is back in the headlines, and like the dollar a few weeks ago, the market seems to be moving inversely to the price of a barrel of oil, which moved over $100 at one point last week. For the TSP, both the the C-fund and the S-fund lost 1.67% on
In a way, I find it encouraging that buyers were willing to push the major averages back up on a Friday in spite of the continued social and political turmoil in the Middle East and North Africa. I had expected to see some measure of selling pressure during the afternoon session, but it never materialized. I'd have to count that a positive development. And the VIX fell 9.3% as a result of today's action.
Oil tacked on 0.7%, which brought the cost of a barrel of oil to $97.97. This
Updated 02-25-2011 at 05:02 PM by coolhand
Late rally helps - Stocks were mixed yesterday as the Dow lost 37-points, the S&P 500 slipped a point, but the Nasdaq, small caps and the Transportation Index were up... Market Commentary for 2/25/11 Current Daily Market Commentary