The Dow Jones Industrial Average (INDEXDJX:.DJI) continues it’s climb upward as the blue chip stocks march deeper into positive territory on Tuesday.
The Dow Jones Industrial Average Tuesday is up currently by 63 points, or 0.64% at 10,854.67. The S&P 500 was gaining +8.08 (0.70%), to 1,167.81, and the Nasdaq was up by +26.90 (1.13%), or 2,402.40.
According to TheSteet.com, UBS economists Maury Harris and Drew Matus said the European Union rescue package removes a downside risk to the U.S. by stabilizing financial markets.
“Continued high levels of volatility in financial markets and tighter credit conditions throughout Europe could have reduced the willingness of firms to borrow, expand and hire, thereby short-circuiting the ongoing U.S. economic recovery,” Matus said, adding that even steep moves in the exchange rate wouldn’t have had a huge effect on U.S. growth via the trade balance.
“It is likely the main impact would have come through a reduced ‘wealth effect’ related to the equity market decline in the U.S. and the EU crisis unfolded. Providing a partial offset to this weakness would have been lower bond yields and energy prices.”
What do you think?
So what are your thoughts about the stock market today? Are we going to continue deeper into positive territory?
Or can we expect a pull back by the end of the day?
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US financial markets may pull back again on uncleared euro crises and danger of spreading the ecomomix crises to Spain, portugal anmd Italy is still hovering around which is evident from Gold rally at record high of USD 1220.30 an ounce and most likely to test upper new level of USD 1250 within days. Selling stocks on strenght will make you strong on rebuying at major downsides. Short within a Box strategy seems perfect.