Wednesday, February 03, 2010
Back On The Up?
Since our last post the markets have been on the up again with the Dow seeing a second straight triple digit gain. The Dow added 111.32 points to close at 10,296.85. The SPX rose 14.13 points to close at 1,103.32. We are in the green and looking ok.
The gains arose on the back of good housing news. Pending home sales rose 1.0 percent to 96.6 in December. This follows November's decline of 16.4 percent. DHI shares tacked on 10.92 percent to a price of $13.21 today. The home builder reported a surprise profit for its fiscal first quarter, its first profit in nearly three years.
Fear has been falling the past week after spiking on Jan. 21 and Jan 22. The CBOE Market Volatility Index (VIX) rose to a high above 28 after trading below 20 for most of January. Now the index has come back down to its 52-week moving average near 21. What this shows is that less people are now buying puts so the fear element of a major decline has receded....apparently.
Until next time.
The gains arose on the back of good housing news. Pending home sales rose 1.0 percent to 96.6 in December. This follows November's decline of 16.4 percent. DHI shares tacked on 10.92 percent to a price of $13.21 today. The home builder reported a surprise profit for its fiscal first quarter, its first profit in nearly three years.
Fear has been falling the past week after spiking on Jan. 21 and Jan 22. The CBOE Market Volatility Index (VIX) rose to a high above 28 after trading below 20 for most of January. Now the index has come back down to its 52-week moving average near 21. What this shows is that less people are now buying puts so the fear element of a major decline has receded....apparently.
Until next time.
# posted by Paul @ 4:32 AM 
