A 257 point gain–but is the market convinced?
An impressive rally and you don’t have to look far for the cause. On July 15, the Dow Industrials climbed 3.1%, the S&P 500 3%, and the NASDAQ Composite 3.5%. Technology stocks, up 4.2%, led the advance, buoyed by earnings from Intel (INTC) and financials, up 4.1%, were only slightly behind on news that credit card default rates seemed to be trending lower.
Still I would have thought that the third up day of the week would have generated more enthusiasm. Volume on the New York Stock Exchange did climb to 1.4 billion shares, a big improvement from the less than a billion shares traded on Tuesday. But volume fell slightly below the 200-day-moving-average of 1.5 billion. That’s a sign, I think, that investors still aren’t convinced that they need to get into this market. Economic news remains of the better than expected sort: Technology watchers IDC and Garner Group announced that PC shipments in the second quarter were down 3.1% and 5%, respectively. Bad news? Well, not compared to expectations for a deeper decline. I think what we’re seeing is a market deeply uncertain about how much “less bad” news is worth.
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Welcome back Jim!
Welcome back Jim. I am following you for more than 2 years. I am happy to see you back.
Welcome back, Jim. New website looks good.
Very happy to see you back
Ah….life is good again…Jim’s back!
Really great to see you again Jim – and the website looks very good. Can you comment if you will still be speaking at any of the MoneyShow events?
So good to see you back Jim! The blog looks awesome!
Please do continue to post videos of your thoughts on the markets and stocks. They were very insightful.
Welcome back Jim! The book is terrific!
Jim, you are simply the best.
Nice to be able to read Jubak articles again.
To answer a question or two and to add an update: Yes, I will be speaking at the MoneyShows again starting in November, it looks like now, and Orlando in February, definitely. I don’t have the facilities or staff to shoot videos myself for this blog but I do have a deal in the works that will put videos back on the net in a few weeks. And finally, watch today’s market to see if the market pulls back–technicals say it is already overbought in the short term–or has the strength to break higher. Until we get substantially above current resistance, this looks like a trading range.