Friday, October 23, 2009

Stock Market Down for the Week; Bonds Down for Third Week in a Row

If Bennie doesn't fly his money loaded jets, the stock market will eventually crack. A down close on a Friday is not a good sign.

The Dow Jones Industrial Average closed down 109.13 points, or 1.08%, to 9972.18. For the week, the Dow fell 23.73, or 0.24%.

The S&P 500 index fell 13.31,today, or 1.22%, to 1079.60. For the week, it fell, 8.08, or 0.74%.

More significant, Treasury prices dropped on Friday, pushing them down for the third straight week of losses. With a record auction coming next week, be sure to wear battle gear, beginning Monday.

The dollar continued strong, across the board.


  1. Could we be seeing a divergence between Treasury's and the Buck on the risk adverse play...?

  2. A down close on a Friday is historically average, especially after options expiration on October 16.

    If the market continues down on Monday (10/26) and there is no upturn at the end of the month, then maybe equities are in for a decline.

    Long-term US Treas. interest rates have been rising since December, 2008 but showed a short-term decline beginning in September, 2009. If you "buy the rumor, sell the news" regarding interest rates maybe now is the time to buy Treas. although that seems counter-intuitive - ahhh the market is a complicated place - what to do?

  3. I don't know where you are getting your numbers. But a down close on a Friday, when the market is down for the week is not an average occurrence.

    Friday trading is always much more important trading than Monday. Traders square their books on Fridays, not Mondays.