The market gyrations have spun the other way today, the news on wall street although in my opinion not that exciting spurred some impressive gains. Many "bullish" investors felt the market was undervalued and the FED easing liquidity in the markets sent stocks surging higher. Even in lieu of the fact that oil hit a new record high.While everyone on wall street is happy with the incredible run up in gains, some experts are still pessimistic and feel that this up down trend is nothing to celebrate. The markets have been unusually wild due to many factors and the news changes every hour. Investors are still urged to look at the "big picture" including the economy. Market "bulls" still need to keep tabs on the Consumer Price Index, as well as inflation and M3 the money supply.
Gold is still hovering just under $1,000.00 dollars after it has had an impressive run up, the US Dollar is still lingering in record low territory and consumer debt is till dangerously high at 2.4 Trillion. In order for such impressive gains to have meaningful weight several of these troubling conditions must reverse themselves. One indicator that has "all eyes focused" is the jobs report and in light of Citibank's 30,000 person layoff accompanied by a difficult housing sector, may make today's market victory a Pyrrhic one likened to a "bottom" bounce. In either way, and wether you are a "Bull" or a "Bear" I am no financial advisor, so consult your professionals for their take on your specific investment strategies.
But it is my opinion that one good day is no indication of a trend, although I do hope it ends up being just that... a upward trend. Time will tell and I certainly was happy to see Wall street regain some lost ground.
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