As the markets did Monday and Tuesday, today we opened way down and as soon as the European markets closed we rallied the rest of the trading session but closed off the highs.
There was no news that drove the rally, we were simply oversold in the morning. A bright spot to be had is Apple (AAPL) closed in the green today. Anymore traders have been using Apple as a guiding director to where the markets are going to go. Apple really has become the fourth asset class, one all in its own.
With earnings season almost over here in the States, Europe now sits squarely in the picture marketwise. With all the worries going on in the Eurozone volatility has come back into the fold. While volatility can shake out the loose hands it also creates perfect buying opportunities to scoop up miss valued (priced) assets at bargain rates.
Gold continues to see weakness, and it appears European Central Banks are selling their gold ahead of needed bailouts – or to try and stave off a bailout. The metal fell $10.30 to $1,592.20 an ounce. It might develop that Gold will remain under pressure until the printing presses get turned back on, and in the meantime we could see further downside so be ready to stop out if needed.
Oil continued to also fall, down 20 cents to $96.81 a barrel. We could see oil drop all the way down to $85 a barrel.
The DOW (INDU) closed down 97 points, the Nasdaq (COMP) was down 12 points, and the S&P 500 (SPX) was off 9 points.
Keep your shopping list handy, but also be prepared to sell into rallies. 2012 could end up just like 2010 and 2011 in terms of market action.