This is another bear market rally, a fake rally during a bear market. Over 70% of yesterday's big gain is gone. Dow plummeted 294, decliners over advancers better than 2-1 & NAZ down 58. In addition, oil dropped 5 & gold an enormous 64 (that's right, 64 to 936). Can you spell: "Nervous Markets?" Big oils sold off (down 4 was typical) reacting to the decline for their commodity. The Alerian MLP index pulled back 5 to a new 52 week low of 266.54. This little followed index may give a good feeling of the underlying strength for the economy. The businesses own oil & gas pipelines, basic to the economy.
The FED made no announcements today, so we had to rely on regular news releases. There is a growing awareness that more ugly stories may emerge & there is just so much that FED rate cuts & willingness to help ailing investment houses can do to solve the financial mess. This week may repeat last week, an enormous gain on Tues is followed more market drops.
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