Just another Triple Digit Swing in the Dow Jones
Its becoming far too normal and suddenly, a typical trading day watches the Dow Jones swing 100+ points in either direction on a moments notice. Trading in 2009 is nothing more than volatile gambling where the NYSE and NASDAQ have been replaced by roulette and craps tables.
Today the Dow Jones Industrial Average is up 122 points to 9,609 or 1.29% on positive news that really, I'd rather not get into (but grudgingly will eventually) because its just another story that has big money doing this and that. In the last 30 days the Dow has only moved up 1.7% despite all this grandeur of triple digit swings, but during that time its bottomed at 9,475 and peaked at 9,891.
Depending on which financial news or blog site you are reading, everyone has their own 2 Cents on where the market is headed, how being bullish or bearish is the only way to play and make money in this turbulent market.
Once again Earnings Season is upon us Alcoa Reports Thursday and every credible and non-credible analyst has an opinion on what you should be doing with your holdings. Despite the negative news that is out there concerning Unemployment at 9.8% in September and that it will be 2017 Before All Jobs to Return in a Post-Recession world, the bulls keep charging.
Believe me, I am very happy to read and watch the positive impact of today's report that the service sector grew for the first time in more than a year and stocks are off the races. Also that Goldman Sachs (NYSE:GS) said buy the big U.S. Bank stocks and everyone starting throwing money around and dancing to Kool & The Gang's "Celebration".
Alan Greenspan said this past weekend that the Fed will have to withdraw money from the financial system to avoid inflation. The central bank has doubled its balance sheet over the last year to $2.2 trillion as it battled the recession that began in December 2007.
The economy will grow at a 3% to 4% annual pace in the next six months before slowing in 2010, Greenspan predicted. Growth will be aided by a surge in the stock market and inventory restocking by companies. Share prices are likely to “flatten out, even though earnings are doing very well.”
Facts are facts, but what the typical investor is now accustomed to are days of triple digit gains and losses in the Dow and 2% to 4% swings in the S&P 500 -- its crazy.
We know how we all got to this point, but I can't help but stress that TRIPLE DIGIT SWINGS IN THE DOW ARE NOW "THE NORM".
Billions of dollars in equities are jumping or falling at the ping of the latest Google News headline.
THINK THE WORST RELATIONSHIP
Just imagine your 401(k), IRA, indivudual post-tax portfolio like that worst girlfriend or boyfriend you've ever had in life. You know the one you broke up with over & over again only to rationalize with yourself that she/he is not that bad and everyone else had it wrong. You let that person destroy your life, maybe even crash your car and despite friends and family telling you to 'move on' you had to prove them wrong. For most of us, at some point you came to your senses and finally -- cut the string. After 'X' amount of time you discovered that life is better without that special someone and kick yourself on the time and money you wasted.
I know many of you feel this way about the market since 2008, its been a tough ride, but what do we do?
We put our money right back into it.
But hey, I bet you can change her right? You are that one person that with just the right coaching and plays, you can turn that relationship into something wonderful!
Wait a second, are we talking about significant others or relevant investments?
Welcome to the world of 100+ point swings, Mr. Market will be happy to crash your car for you now.