Today’s price action is just another example of how sporadic and unpredictable the market has been thus far in 2011.
On Monday’s recap I stated, “Market volatility continues as we await a resolution to the US debt ceiling. Just about any investor you speak with thinks surpassing this hurdle is going to cause a sizable rally the day of and thereafter, ie buying the news. With everyone onboard the bull train, I can’t help but wonder if this is the perfect time to be a contrarian.”
While Contrarians have come out on top today, tomorrow’s future is a clean slate and just as questionable. Assuming the US gov successfully raises the debt ceiling, I will be interested to see how the market ultimately reacts. At this point, the NASDAQ trading at 2600 or 3000 a month from now would hardly surprise me.
My quote of the day: Cash remains king, and day traders reign supreme. Stay frosty out there!
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | (-) Down | (-) Down |
| Short-term | (-) Down | (-) Down | (-) Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
