October 10, 2011
Good morning. It was a solid week to the upside last week, with the SPY gaining 2.3% to close at 115.71. The “relief” rally also caused the VIX to drop sharply to a level of 36.20, a weekly drop of 15.7%. A lot of this was due to a growing idea that the European debt situation was about to be more adequately addressed by the European Central Bank (ECB) and the governments of Germany and France.
August 8, 2011
Good morning. It is hard to even describe what happened in the market/world last week and the ramifications it may have on the economy and individual wealth going forward. The market had a horrible week, with the SPY down 7.2% to close at 120.08. The volatility index (VIX) closed up 27% on the week to close at 32, a level not seen since June 2010. Maybe even more amazing, since the focus of the week was the impending downgrade of the US credit rating, the 30-year bond was up over 3% on the week to close at almost 132, representing a 30-year yield of 3.8%.
July 13, 2009
Good morning. Dull and down for the market last week, with the SPY down 1.95, or 2%, to close at 87,96. The onslaught of earnings season continues this week, but the initial earnings report of Alcoa (AA) showing sales down over 40% from last year tells the tale. It’s true that AA has shown some management aggressiveness in cutting costs (and some solid PR in telling everyone what a good job they are doing) so the earnings, although negative, were not as bad as expected.