Diamonds and Dogs
Market DipsDow Goes Negative for the Year
We are 4 ½ months into 2010 and we are watching the early gains disappear into the night as the Dow is now negative for the year intra-day. With 9 out of the last 12 session's negative, the bears are winning the recent battles. The war is being waged over the ability of the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) to stabilize their finances. With $1 Trillion Euros pledged to defend the European economies, the risk of the markets seizing up has been greatly reduced. Nimble investors should be able to pick up some opportunistic trades with all of the volatility surrounding the recent action. Speaking of volatility, 14 of the last 17 trading sessions have had triple digit moves so investors need to brace themselves for some ups and downs. Right on cue, the S&P just traded within 2 points of its 200 day moving average and had a good bounce. Look for opportunities in the oil patch, companies with no debt, and companies with international exposure on the dips.