We woke up this morning to see the futures up about 2%-2.5% after China announced they would have their own stimulus plan. The number looked smaller than ours. But, if you take into consideration all factors and compare apples to apples, this is a much bigger stimulus plan than ours. Some say over ten times the amount of ours. This will have a very big impact at some point in not only China but around the world.
So, it looked like it would be smooth sailing today. Well, we saw a 200 point rally in the Dow evaporate only to see us almost down 200 close to the end of the day. A last minute rally and we finished down about 70 points. Even though we went around the moon to have a slightly negative day, there wasn’t much activity. Volume was extremely light and there wasn’t much commitment by sellers or buyers. In fact, today looked like the buyers taking a break more than intense selling. That leaves us in a watch and see position. The rally needs to build on itself. It hasn’t done that yet. I still believe the path of least resistance is up but it’s sure not convincing so far.
Have a good evening.
