Stock Market Strong Performance Despite the Congressional Dithering
Stock-Markets / Stock Markets 2012 Dec 12, 2012 - 03:37 AM GMTCourtesy of Doug Short. The markets certainly didn’t share the dismal outlook of this morning’s NFIB Small Business Optimism Index, which posted the 10th worst level in its history. The S&P 500 surged at the open and hit its intraday high, up 1.11%, in the late morning. The index showed resilience through the early afternoon until Senate Majority Leader Harry Reid expressed his view that “it’s going to be extremely difficult to get it [an agreed budget plan] done before Christmas.” The index rolled over for about 30 minutes but the regained its poise and closed the day with a 0.65% gain. Today’s intraday high was back in the neighberhood of the November election day intraday high.
Here is a five-minute chart of today’s action.
Here is an hourly chart highlighting the November 6th election day high and today’s intraday high.
The S&P 500 is now up 13.54% for 2012 but 2.59% below the interim closing high of September 14th.
From a longer-term perspective, the index is 111.1% above the March 2009 closing low and 8.8% below the nominal all-time high of October 2007.
For a better sense of how these declines figure into a larger historical context, here’s a long-term view of secular bull and bear markets in the S&P Composite since 1871.
- Phil
Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)
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