Thursday, January 24, 2008
Did We Hit the Bottom?
There was a major retest of Tuesday’s lows which provided strength for stocks late in Wednesday’s session. The Dow gained 298.98 points to close at 12,270.17. The SPX added 28.10 points, closing at 1,338.60. We have no position on at the minute.
Stocks have shown a lot of volatility the past few sessions, but the end result has been a move higher. After moving to a low near 11,700 yesterday, stocks rebounded to end the session well off their morning lows. Today, stocks once again moved lower at the open, retested Tuesday’s low than turned in a major rally. The Dow showed a range of 632 points. Many technical analysts felt a retest of the lows would occur before stocks rallied and this was indeed the case.
Weakness was seen early in the session after the European Central Bank not only didn’t cut interest rates, but stated that inflation was still a major concern. The hope was that other central banks would follow the lead of the Fed to help ease a global credit crunch. Canada eased its rate by 25-basis points, but this is the only other country so far to make a move.
Now we will have to see if strength continues Thursday or if volatile sessions will remain. The existing home sales data for December is due out Thursday with expectations for annualized units to fall to 4.95 million from 5.00 million in November.
Lets see.
Until next time.
Stocks have shown a lot of volatility the past few sessions, but the end result has been a move higher. After moving to a low near 11,700 yesterday, stocks rebounded to end the session well off their morning lows. Today, stocks once again moved lower at the open, retested Tuesday’s low than turned in a major rally. The Dow showed a range of 632 points. Many technical analysts felt a retest of the lows would occur before stocks rallied and this was indeed the case.
Weakness was seen early in the session after the European Central Bank not only didn’t cut interest rates, but stated that inflation was still a major concern. The hope was that other central banks would follow the lead of the Fed to help ease a global credit crunch. Canada eased its rate by 25-basis points, but this is the only other country so far to make a move.
Now we will have to see if strength continues Thursday or if volatile sessions will remain. The existing home sales data for December is due out Thursday with expectations for annualized units to fall to 4.95 million from 5.00 million in November.
Lets see.
Until next time.
# posted by Paul @ 5:53 AM 
