thependulumswings

Friends

Stocks finally took a little breather today, and that is probably a good thing. The market averages have gotten very extended on a technical basis, so before we set ourselves up for another more drastic downturn, it would be nice if we just cooled down a bit. The Fed is meeting today and tomorrow, but it is not expected that anything particularly new will come out of it, but we’ll let you know what the statement and Mr. Powell have to say.

As for today, by the close the Dow Jones Industrial Average was down 300 points to finish the day at 27,272. The S&P 500 was down 25 points to close at 3,207. Gold was up $15 to trade at $1,720 per ounce, while oil was up $.49 to trade at $38.68 per barrel WTI.

Though Covid-19 cases seem to be on the rise in states like Texas, California, Arizona and Florida, the markets for the time being aren’t taking any notice. It was expected that case counts would rise as states opened up, so for the time being we’ll count it as an expected occurrence, but we will keep an eye on hospitalizations which have risen here in Texas. As mentioned, today’s pause is one that was welcome. It would be good to see the economic data catch up just a little with stock prices. Oh, I’m just on old worrier, aren’t I?

Have a nice evening everyone.

Jim