Friday, September 24, 2010

Triple Digit Rally Questioned

Not to be a joykill,but today's rally was about as sound as the emperor's new clothes.For one thing,the volume remained light,meaning it was driven by a relative handful of the trading community.For another,the old 25% trading range of 1000 to 1250 on the S&P is still intact.As well,it's near the end of the quarter,and the proverbial window dressing by fund managers is going on.They have to put something other than cash in their portfolios under management,so they ran out and scooped up a lot of commodity and big multinational stocks.The economic data continue to be mixed,so there were ulterior motives behind this triple digit action.
The only motive the Philadelphia Phillies have is getting into the playoffs,and they are on the verge of doing just that.Tonight they brushed by the New York Mets 3-2 in Philly,their 11th straight win.They need two more wins to clinch the National League East title.In Toronto,Jose Bautista slammed two more homers,lifting the Blue Jays to a 6-4 victory over Baltimore and his home run total to 52.In golf,American Jim Furyk and Englishman Luke Donald lead the first two rounds of the PGA Tour Championship in Atlanta at eight under par,while Australian Jeff Ogilvy is third at -7.Furyk has won 46,000,000 dollars in his career.
The harvest moon is still visible,so you might stick your head out for a glimpse of it.It's the first full moon of autumn.The orient has been marking the harvest with an extended holiday,closing financial markets for at least part of the past week.
Stock futures rose sharply this evening,but bond futures rose as well,casting doubt on Monday's direction.

No comments:

Post a Comment