Transcript:
Hello, everybody, welcome to Thursday. The S&P 500 was up a lot today: It was up 1.2%. The Dow was up almost 1.5%, NASDAQ 1%, the Russell 2000 Small Cap index was up about 1.9% today. Everything was green. Not everything. But, most everything was green today, it was really an incredible day all together.
And I find it very, very strange because we had these situations, they’ve resolved to a certain degree, what happened with this big company in China, with the real estate debt, and that seems to help quite a bit yesterday. And then the Federal Reserve came out and talked about how they were going to be cutting back on the bond purchases. They were going to be raising rates might even be raising rates sooner. And we’ve seen the 10 year Treasury going up.
All of those things in the past and not even very long, though, even over the summer, when those types of situations came up, the market would usually fall in, and so today it comes up. We broke through the 50 day moving average. We fell through it before and then we’ve come back up, and so that’s a significant piece for a lot of these technical traders. And so it’s very fascinating to me, in the middle of this debt ceiling conversation: “What is happening?”
So, there’s a lot of potential reasons why; we’ll have to see how this plays out. Very, very good, though. When you have two really strong up days in a row, oftentimes that’s a great signal of a reversal for things to kind of come back, and definitely money was pouring in today.
I’d say for me, the most of the surprises that have come this year have been on the upside, where I feel like there should be some more deterioration before things turn around, and it doesn’t happen. And we were only down about 3.6% from the high here, over that little three week period of time, two and a half week period of time, and I felt like there was possibility, that it could come down some more. I still think that you might want to be a little bit cautious. I have this gut feeling that in this political environment, we’re going to run this debt ceiling conversation to the very edge, and that would probably scare the market in theory. So, we’ll kind of see what happens, as far as that goes.
Again, I do think that will be resolved. I don’t think they’re gonna let the US government default on anything, but it could get closer than we would like. Again, this political environment is kind of contentious, and I think that’s one of the issues that could happen here. So, very happy to see an up day. I’d love to see some of the pieces that went up today, a lot of good quality companies had some good runs, and it does show you the power of how much money is on the sidelines, and how powerful all the positives are that are currently sitting underneath this whole market and has been driving it all year. So that’s a good thing. So we’ll see how this plays out.
Again, I still think things are very positive. I just like to see what happens here with this debt ceiling, which could take a little while, before we get a resolution. But anyway, I look forward to seeing you tomorrow. If you get a chance to sit down and watch the Talk Money with Tom tomorrow at 12:15pm. I’d love to answer any of your questions and what have you there too, and see what’s gonna happen tomorrow. I give my summary for the week, tomorrow also at the beginning of the show. So I’ll talk to you then. Thank you very much.