My Money is on the Bulls

by Sam Collins  
Email This   Print Page  Tweet This Tweet This

Free Trading Guides

 

In a week when the stock market treated good news badly and bad news finally rallied the market, traders and investors alike will no doubt be more than happy to call it quits for three days and clear their heads.

Yesterday, stocks reversed course after four miserable days and followed the lead of China, which rallied for a huge gain of more than 5% the night before.

The fact that jobless claims for the week ending Aug. 29 totaled 570,000 (4,000 more than analysts had anticipated) was almost totally ignored, as was the report of continuing claims, which jumped to 6.23 million from 6.14 million.

But stocks did start off weak after the ISM service index topped expectations of 48 by coming in at 48.4, which is a high for the year. Shortly after the ISM numbers, the financial group picked up bargain hunters, and it wasn't long before other groups began to move too.

Even though retailers like Gap (GPS), Limited (LTD) and Target (TGT) reported negative same-store sales, they weren't as bad as feared, so they rallied, as well.

At the close, the Dow Jones Industrial Average (DJI) was up 64 points to  9,345, the S&P 500 (SPX) gained 8 points to 1,003, and the Nasdaq (NASD) rose 16 points to 1,983. 

Volume was relatively low, with the NYSE trading just 1.1 billion shares and Nasdaq crossing 571 million. But on the Big Board, advancers beat decliners by almost 4-to-1, and on the Nasdaq, the ratio was in favor of the advancers by 2-to-1.

More By This Expert

U.S. Stocks or Emerging Markets?

Which is the better place to have your money now? Find out here.

Take Another Stab at JBHT

The market correction caused a pullback in JB Hunt Transport Services (JBHT) after the last time we recommended the stock, but it may be time for another try.

2 Things Investors Don't Want to See Happen

If the S&P 500 fails to make a new high, it could create a double-top, which will probably have one of two negative outcomes.

Take a Gamble on UVT

While a correction could occur, the odds favor a big move up in the ProShares Ultra Russell2000 Value ETF (UVT).

Don't Get Burned by the Market

Investors who try to anticipate the market's next move may get burned. Your best course of action here is to be patient.

Options Broker Center

Compare Brokers