Holiday mood is gaining momentum and judging by how the investors sold their equities, Thanksgiving will be another excuse for stock market to head south. In time of uncertainties coupled with long holiday it’s just too hard to convince investors to long. The 13,000 Dow’s mark is still a crucial point to note and as long as it couldn’t stabilize, you just can’t long, at least temporarily.
The stock market has been thrashing about recently as investors attempt to gauge how companies will fare amid a further slowdown in the U.S. housing market, a deterioration of credit and record oil prices that crested above $99 a barrel ahead of Wednesday’s session. Stocks have fallen in eight of the 11 last sessions including Wednesday’s 200 points slide.
The Conference Board suggested an economic slowdown could accelerate in the coming months amid rising costs and further weakness in the housing market. On the other hand the Reuters / University of Michigan consumer sentiment survey showed its lowest reading in two years – an unwelcome development for retailers entering what is for many the most important period of the year. The Commerce Department said jobless claims fell by 11,000 last week, a positive sign for U.S. employment.
There’s only one word to describe the current stock market – it is so emotional.