Diamonds and Dogs

Market Dips

Dow Goes Negative for the Year

We are 4 months into 2010 and we are watching the early gains disappear into the night as the Dow is now negative for the year intra-day. With 9 out of the last 12 session's negative, the bears are winning the recent battles. The war is being waged over the ability of the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) to stabilize their finances. With $1 Trillion Euros pledged to defend the European economies, the risk of the markets seizing up has been greatly reduced. Nimble investors should be able to pick up some opportunistic trades with all of the volatility surrounding the recent action. Speaking of volatility, 14 of the last 17 trading sessions have had triple digit moves so investors need to brace themselves for some ups and downs. Right on cue, the S&P just traded within 2 points of its 200 day moving average and had a good bounce. Look for opportunities in the oil patch, companies with no debt, and companies with international exposure on the dips.

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.