Stuck in the Mud
Since the Federal Reserve announcement of a third round of quantitative easing, the market has been stuck in the mud. The S&P 500 closed at 1460 on Fed day -- Thursday, Sept. 13 -- and, one week later, it's still at that level. Have the bulls won because the market didn't go down, or have the bears won because it didn't go up? I say it tells us not much has changed.
The stocks that sank the most during the spring decline gave the most back in this recent overbought situation -- think Financial Select Sector SPDR (XLF), Market Vectors Oil Services (OIH) and the Dow Jones Transportation Average. Meanwhile, the stocks that have performed well all year continued to go on their merry way, such as Apple (AAPL), homebuilders and biotech. So QE Forever might have produced a surge on the day it was announced, but ultimately the market went right back to doing what it had been doing....418 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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