Stocks today traded in a narrow range today after some early selling the first 30 min. It then proceeded to make a slow climb back up to the 795 range before zigzagging back and forth downward to close at 788, down les than a point from the prior day. I think there may have been a collective sigh of relief that we at least stabilized or at least took a breather from the prior days selling. The net result was that most the major indicies closed right at their prior close give or take a fraction.
After hours HPQ disappointed investors with slightly worse than expected and was hit for a couple of points, but to be honest, I thought their sales and earnings were not too bad considering the economic situation. They’ve obviously made some good efforts on their cost cutting program.
The dollar continued strong and is close to making a breakout here to the topside sitting right at resistance and gold after being weak early manage to add on to its gains later in the day and seems to be determined to break the $1000 barrier again. Seems to me that that the trade is getting awfully crowdwd these days with the move up getting a lot of media attention. Where were all these buyers 60 days ago when the price was 30% lower? Did they really expect the new administration to be doing anything other than what they’re doing. So at the moment we’re sitting right at the next resistance level from the high in July as seen on the chart below. Admittedly and belatedly, as often the case, the media has been all over the story that Europe due to massive loans to Eastern European countries may have even bigger problems than us, and act like its a big surprise when anyone that reads anything other than the funny pages has seen this coming for many months. Overnite the dollar has started to pull back some.