There was a correction coming; we all knew that. Nobody apparently was aware that it was going to begin on the last day of trading for 2009, but that's exactly what happened. Call it tax-related or year-end jitters, any way you slice it, stocks took a real nosedive on December 31, wiping out all of the week's gains and more. In the Dow's case, just about all of December was swished away in one final day, leaving that index up a paltry 83 points for the month. The results for the S&P were better, as the 500 index ended December with a gain of about 20 points, though it still can't seem to shake loose from the 1100-1125 level.
Best of all was the NASDAQ, which ended the final month of the year 125 points to the positive, or about a 5% gain. That was the best news of the day, and the NASDAQ the best-performing index of not just the month, but the entire year.
Dow 10,428.05, -120.46 (1.14%)
NASDAQ 2,269.15, -22.13 (0.97%)
S&P 500 1,115.10, -11.32 (1.00%)
NYSE Composite 7,184.96, -56.28 (0.78%)
As one might conclude from the final figures, advancers trailed decliners on the day, 4171-2375, a pretty wide gap. New highs numbered 322, with 49 equities posting new lows. Volume was as utterly pathetic as it has been all week, the low velocity of trading potentially causing the losses to appear exaggerated.. or not, depending on your perspective. Surely, stocks have had a wonderful year, but ending this way just gives one pause. Are we really out of the woods, or are the players and movers and shakers who brought us disaster in 2008, giving us reason to believe that 2009 was a mirage and 2010 might not be as positive as some expect. We'll have to wait until Monday, January 4, for our first glint of what the new year may bring.
NYSE Volume 2,547,756,250
NASDAQ Volume 1,254,659,250
Commodity prices bounced around a bit, but ended mostly flat. Oil was up just 8 cents, to $79.36, while gold gained $4.00, to $1,096.50, and silver added 2 cents, to $16.82.
With 2009 now officially in the books, we wish all of you a Happy and Prosperous New Year!
Thursday, December 31, 2009
Wednesday, December 30, 2009
For a Wednesday, It Sure Felt Like a Friday
The financial markets have slowed to a complete crawl as the week winds toward the end of the year, the decade, oblivion. The end of oblivion may be where the market is headed, but one would be hard-pressed to find that place.
Wednesday on Wall Street was more like a Friday. The place was empty, which brings up an interesting thought: what if you wanted to sell your stocks and there were no buyers? It could happen, especially if the US economy does the double-dip so many believe it will. In that case, you'll be stuck with your stock certificates, or, barring that, the memory of same.
Stocks are just pieces of paper, we should constantly remind ourselves, and worse than that, in today's economy, they are nothing more than protons and electrons traveling around an electrically-charged financial universe. They, as strictly a function of perception and perceived risk, may be worth what the next person is willing to pay. If that amount is less than what you paid, you lose. If more, you win. If nobody cares, you lose. In two out of three of those circumstances you lose and in one (a 33% chance), you lose everything you invested.
Is that any way to construct a plan for financial stability or prosperity? Probably not, though we, as humans, are prone to accepting and believing in whatever horsecrap suits our mind-set best, and for the majority, it's stocks. No, not gold, or even silver, or trinkets, dishwashers, sofas or houses, but little pieces of paper or whirring sub-atomic material which shows up in our online accounts as a series of numbers with symbols, periods and commas attached.
That is which that we have placed our faith. Good luck to us all.
Dow 10,548.51, +3.10 (0.03%)
NASDAQ 2,291.28, +2.88 (0.13%)
S&P 500 1,126.42, +0.23 (0.02%)
NYSE Composite 7,241.24, -10.95 (0.15%)
For the third straight session, declining issues held sway over advancing ones, 3376-3089. New highs, there were 257. There were 46 new lows. Volume was so light that many considered just leaving at lunch time, and many did. The whole she-bang seems to be grinding to a halt with one more day remaining to trade in 2009.
NYSE Volume 2,685,528,000
NASDAQ Volume 1,314,963,375
The Chicago Purchasing Managers Index, which came in at 60.0, topped expectations, hitting its best level since 2006.
Commodity markets were equally dull. Oil gained 13 cents, to $79.00. Gold lost $6.10, to end at $1,092.00. Silver fell 33 cents, to $16.79. Two weeks ago, silver was over $18.00. Now, this? Something is definitely wrong with precious metals and that could bode ill for everyone.
Last day of the year is tomorrow. Let's hope we all wake up on the other side.
Wednesday on Wall Street was more like a Friday. The place was empty, which brings up an interesting thought: what if you wanted to sell your stocks and there were no buyers? It could happen, especially if the US economy does the double-dip so many believe it will. In that case, you'll be stuck with your stock certificates, or, barring that, the memory of same.
Stocks are just pieces of paper, we should constantly remind ourselves, and worse than that, in today's economy, they are nothing more than protons and electrons traveling around an electrically-charged financial universe. They, as strictly a function of perception and perceived risk, may be worth what the next person is willing to pay. If that amount is less than what you paid, you lose. If more, you win. If nobody cares, you lose. In two out of three of those circumstances you lose and in one (a 33% chance), you lose everything you invested.
Is that any way to construct a plan for financial stability or prosperity? Probably not, though we, as humans, are prone to accepting and believing in whatever horsecrap suits our mind-set best, and for the majority, it's stocks. No, not gold, or even silver, or trinkets, dishwashers, sofas or houses, but little pieces of paper or whirring sub-atomic material which shows up in our online accounts as a series of numbers with symbols, periods and commas attached.
That is which that we have placed our faith. Good luck to us all.
Dow 10,548.51, +3.10 (0.03%)
NASDAQ 2,291.28, +2.88 (0.13%)
S&P 500 1,126.42, +0.23 (0.02%)
NYSE Composite 7,241.24, -10.95 (0.15%)
For the third straight session, declining issues held sway over advancing ones, 3376-3089. New highs, there were 257. There were 46 new lows. Volume was so light that many considered just leaving at lunch time, and many did. The whole she-bang seems to be grinding to a halt with one more day remaining to trade in 2009.
NYSE Volume 2,685,528,000
NASDAQ Volume 1,314,963,375
The Chicago Purchasing Managers Index, which came in at 60.0, topped expectations, hitting its best level since 2006.
Commodity markets were equally dull. Oil gained 13 cents, to $79.00. Gold lost $6.10, to end at $1,092.00. Silver fell 33 cents, to $16.79. Two weeks ago, silver was over $18.00. Now, this? Something is definitely wrong with precious metals and that could bode ill for everyone.
Last day of the year is tomorrow. Let's hope we all wake up on the other side.
Tuesday, December 29, 2009
Weary Santa Rally Stumbles; Stocks End Six-Day Streak
Just a day after vaulting to new multi-month and 52-week highs, the major averages took a breather with just two days remaining to trade in 2009. In what has been a banner year for stocks - at least over the final three quarters - there's little doubt that stocks are in need of a little sideways trade, likely until the beginning of earnings releases which begin in about two weeks.
Just like old St. Nick must be tuckered out after a long journey, so too with stocks in general. Many equities are at or near their highs and investors are taking a wait-and-see attitude. Life for traders and investors should return to a more normal environment once the calendar flips.
There was a little bit of economic news on this very sluggish holiday week, though the data was hardly significant. The S&P/Case-Shiller Home Price Index [PDF] for October showed home prices increasing for the seventh straight month, though the rate of improvement was slowing slightly and not all areas of the country experienced gains. David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s, described the report as "flat."
The Conference Board's Consumer Confidence Index jumped from 50.6 to 52.9, with the rise attributed to improving perceptions of the labor market. The number is still far below the benchmark of 90, considered to depict a "strong" economy.
Markets mostly shrugged off any data, and, with Wall Street sparsely populated once again, much of the activity was confined to squaring up or adding to positions before the year's end. Day traders were active, though overall volume was dismal for the second straight session. Overall volume was lower than Monday's, a sure sign that the incipient rally has run out of steam for the year, but could resume once volume returns to more reasonable levels.
Dow 10,545.41, -1.67 (0.02%)
NASDAQ 2,288.40, -2.68 (0.12%)
S&P 500 1,126.19, -1.59 (0.14%)
NYSE Composite 7,252.19, -9.05 (0.12%)
Decliners outperformed advancing issues for the second straight session, though by the narrowest of margins, 3220-3210. Both new highs (412) and new lows (59) returned lower numbers than on Monday.
NYSE Volume 2,808,519,250
NASDAQ Volume 1,191,436,875
The dollar was stronger against foreign currencies, with the Dollar Index trading in a range right around a key support/resistance area just below 78. The greenback is well off the lows of two months ago, which were in the low 74 range.
Oil managed a gain of just 10 cents, to $78.87. Gold, which generally trades in the opposite direction of the dollar, did so, losing $9.80, to $1,098.10. Silver also fell, down 46 cents, to $17.10.
With just two trading days left in 2009, it would neither be surprising nor upsetting if stocks took a slight haircut into the end of the year of about 1-1.5%. In fact, such a move on low volume might actually be a sign of health, signifying that investors remain cautious, though optimistic about prospects for 2010.
Just like old St. Nick must be tuckered out after a long journey, so too with stocks in general. Many equities are at or near their highs and investors are taking a wait-and-see attitude. Life for traders and investors should return to a more normal environment once the calendar flips.
There was a little bit of economic news on this very sluggish holiday week, though the data was hardly significant. The S&P/Case-Shiller Home Price Index [PDF] for October showed home prices increasing for the seventh straight month, though the rate of improvement was slowing slightly and not all areas of the country experienced gains. David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s, described the report as "flat."
The Conference Board's Consumer Confidence Index jumped from 50.6 to 52.9, with the rise attributed to improving perceptions of the labor market. The number is still far below the benchmark of 90, considered to depict a "strong" economy.
Markets mostly shrugged off any data, and, with Wall Street sparsely populated once again, much of the activity was confined to squaring up or adding to positions before the year's end. Day traders were active, though overall volume was dismal for the second straight session. Overall volume was lower than Monday's, a sure sign that the incipient rally has run out of steam for the year, but could resume once volume returns to more reasonable levels.
Dow 10,545.41, -1.67 (0.02%)
NASDAQ 2,288.40, -2.68 (0.12%)
S&P 500 1,126.19, -1.59 (0.14%)
NYSE Composite 7,252.19, -9.05 (0.12%)
Decliners outperformed advancing issues for the second straight session, though by the narrowest of margins, 3220-3210. Both new highs (412) and new lows (59) returned lower numbers than on Monday.
NYSE Volume 2,808,519,250
NASDAQ Volume 1,191,436,875
The dollar was stronger against foreign currencies, with the Dollar Index trading in a range right around a key support/resistance area just below 78. The greenback is well off the lows of two months ago, which were in the low 74 range.
Oil managed a gain of just 10 cents, to $78.87. Gold, which generally trades in the opposite direction of the dollar, did so, losing $9.80, to $1,098.10. Silver also fell, down 46 cents, to $17.10.
With just two trading days left in 2009, it would neither be surprising nor upsetting if stocks took a slight haircut into the end of the year of about 1-1.5%. In fact, such a move on low volume might actually be a sign of health, signifying that investors remain cautious, though optimistic about prospects for 2010.
Monday, December 28, 2009
Holiday Rally Continues
In the absence of any significant news, traders took up and added to their positions in the midst of a year-end rally that now has stretched to six straight days of gains.
Once again, stocks traded in narrow ranges, led by large-caps, telecom and health care, especially Dow components AT&T (T) and Verizon (VZ). Gains were small and not broad-based, with financial stocks suffering late in the day.
Dow 10,547.08, +26.98 (0.26%)
NASDAQ 2,291.08, +5.39 (0.24%)
S&P 500 1,127.78, +1.30 (0.12%)
NYSE Composite 7,261.24, +6.24 (0.09%)
Declining issues pushed ahead of advancers, 3276-3228, though the number of new highs shot up to 733, against 93 new 52-week lows. Volume was nearly non-existent, as both the NYSE and NASDAQ recorded one of the slowest trading sessions of the year. Expect the low volume mantra to remain in place for the duration of the holiday-shortened week as many trading desks are closed for the holidays. Traders, investors, even hard-nosed day-traders apparently are finding other things to do with their time.
NYSE Volume 3,144,974,250
NASDAQ Volume 1,249,068,375
After falling for the better part of two weeks, oil has managed to gain back to $79.00, up 95 cents on the day, its highest closing level in two weeks. Gold also has regained its previously-lost footing, adding $3.00 to $1,107.80. Silver also gained, up 12 cents, to $17.56.
With so little activity, there simply isn't much to do this final week of 2009 except sit back and wait. Traders and volume should return after the first of the year. In the meantime, the economic schedule of releases is very light. The next major move in the markets should coincide with earnings reports, beginning the second week of the new year.
It's a good time to research, reflect and refocus.
Once again, stocks traded in narrow ranges, led by large-caps, telecom and health care, especially Dow components AT&T (T) and Verizon (VZ). Gains were small and not broad-based, with financial stocks suffering late in the day.
Dow 10,547.08, +26.98 (0.26%)
NASDAQ 2,291.08, +5.39 (0.24%)
S&P 500 1,127.78, +1.30 (0.12%)
NYSE Composite 7,261.24, +6.24 (0.09%)
Declining issues pushed ahead of advancers, 3276-3228, though the number of new highs shot up to 733, against 93 new 52-week lows. Volume was nearly non-existent, as both the NYSE and NASDAQ recorded one of the slowest trading sessions of the year. Expect the low volume mantra to remain in place for the duration of the holiday-shortened week as many trading desks are closed for the holidays. Traders, investors, even hard-nosed day-traders apparently are finding other things to do with their time.
NYSE Volume 3,144,974,250
NASDAQ Volume 1,249,068,375
After falling for the better part of two weeks, oil has managed to gain back to $79.00, up 95 cents on the day, its highest closing level in two weeks. Gold also has regained its previously-lost footing, adding $3.00 to $1,107.80. Silver also gained, up 12 cents, to $17.56.
With so little activity, there simply isn't much to do this final week of 2009 except sit back and wait. Traders and volume should return after the first of the year. In the meantime, the economic schedule of releases is very light. The next major move in the markets should coincide with earnings reports, beginning the second week of the new year.
It's a good time to research, reflect and refocus.
Thursday, December 24, 2009
St. Nick Drops in on Wall Street
As expected, the jolly old Santa Claus Rally began today with modest gains in a shortened session. Stocks posted gains right from the opening bell, with little inducement to sell shares.Dow 10,520.10, +53.66 (0.51%)
Nasdaq 2,285.69, +16.05 (0.71%)
S&P 500 1,126.48, +5.89 (0.53%)
NYSE Composite 7,255.00, +37.80 (0.52%)
Advancers beat decliners, 4288-1962. There were 663 new highs and just 66 new lows. Volume was extremely thin.
NYSE Volume 1,413,204,625
Nasdaq Volume 631,728,687
Oil gained 43 cents, closing at $77.10. Gold was up $10.80, to $1,104.80. Silver finished 25 cents higher, at $17.44.
Everybody left happy.
Merry Christmas
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