Tuesday, August 23, 2011

Market Wonders

With all of the bad news that came out today, we are left to wonder why did the market perform so well today. I believe the answer can be found in the Gold trade. I believe the the market power today came from people exiting their Gold positions and moving their money back to risk (stocks). Let's review todays market news:
  • Bad Manufacturing Number
  • Bad Housing Number
  • Earthquake on the East Coast
We had a major transition out of safety (Gold) into risk! Otherwise, the market seems as if it would have gone down, but we cannot argue with Mr. Market.

Now we just have to see if this holds...

By the way, Japan just got downgraded. We'll see what this does for stocks in the morning!

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