Courtesy of John Nyaradi.
The stock market roller coaster continued today as markets declined after a three day high.
In short, the rally yesterday was likely based on rumors of news abroad, and tough times likely remain until these “rumors” possibly become “reliable rumors.”
Tomorrow is big news as Germany votes on a European Bailout for the ailing Grecian government. We have been talking about Greece now for months, and we, along with the rest of investors worldwide, are very curious (cautiuos?) about what the outcome will be. The outcome of this vote and the Grecian state have been spinning out many rumors, but is a recovery a “reliable rumor?”
Friday also happens to be the day that the United States Federal Government must vote on a bill to prevent a government shutdown. Politicians have been haggling all week, and the house is set to vote on a disaster relief funds deal tomorrow. Hopefully the Federal Government opens Monday morning and that an open government is not just a rumor, but a “reliable rumor.”
Meanwhile, the US Commerce Department reported today that US durable goods orders were down for the month of August, just another indicator that “rumors” about recovery are sometimes not so “reliable rumors.”
However, unemployment reports have decreased overall in major cities across the nation; I sincerely hope this is not just a rumor, but a very “reliable rumor” indicating a possible light at the end of the tunnel.
All in all, I try not to trust the rumors, no matter how “reliable” they might be. The indicators are just too brutal.
Stock Market Summary:
Dow Jones Industrials: (DIA) -1.88, -1.68%
NASDAQ: (QQQ) -.82, -1.48
S&P 500: (SPY) -2.4, -2.04%
Russell 2000: (IWM) -2.6, 3.83%
Have a great evening, wherever you may be.
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