Well today was a wonderful day to all that had their money invested in the stock market. The Dow Jones closed up 404.71 points or 3.90% coming in at 10,785.14 and the NASDAQ closed up 109.03 points to 2,374.67 up 4.81%. Lastly, the S&P 500 came in at 1,159.73 up 48.85 points or 4.40% according to http://finance.yahoo.com/
A great deal of the upside came from the EU rescue package of $1 Trillion to help save the Euro and settle investors of the European debt market. This helps keep money flowing and also put the short sellers up against the wall. Short sellers are people that bet against the market. This in turn creates buying from the shorts to cover their position of betting against the market and sends stocks higher. Don't get me wrong today was a great day to make money and take some profits, but the market is still very volatile and unpredictable in the short term.
In the near term I'm still very cautious about this market as I sold some stock into the strength of the market today. I believe the market will move back lower in the near future at least in some of the individual stocks that I follow. This will give me a better opportunity to buy at lower prices Today was a perfect example of why I enjoy investing. Investing can be fun and profitable at the same time. If your not having fun you must be doing something wrong! Everyday is different and you have to take it in stride.
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome!
Clay,
ReplyDeleteI have a great deal of suspicion about collusion in the market. So much volatility!! I swear that the big money managers are planning these ups and downs so they can short sell and take money from everybody!!
Yes! There were definately some people that were betting against the market to go down. When the positive news came out about the rescue package for Europe there was a lot of shorts covering their positions. That's what helped create a great up day on Monday. There is a negative perception on the market, but I don't think it's real. There are people out there that still need to put their money to work and are pushing stocks down creating panic so they have an opportunity to get in at lower prices and of course profiting on the way down by shorting. Then they buy the stock at lower prices and sell when it appreciates. They are making money on both sides of the market!
ReplyDeleteThank You,
Clay