Tag Archive: mentality

 

Stock Market Rebounding after last week's huge plummet

by jscreationzs

The stock market saw a horrible week last week. This week started with the stock market rebounding back with a huge rally. Almost every stock saw gains (although there were a few exceptions) after mentality about the crisis in Europe changes. Again…the mentality changed.

Investors are hopeful that the rest of Europe will be able to help Greece get out of its current state, which is almost near defaulting. Although nothing drastic has happened, the way investors and consumers are looking at this has changed. I have predicted several times that this will happen over and over. The stock market will remain very volatile as long as the issue in Greece remains unsolved one way or the other. In the meantime, the stock market will go up and down because investors will think that Greece will either Default or come out of it without a problem.

The Dow Jones saw a huge rally today with a gain of over 272 points. It has once again gone over the 11,000 mark but it’s still quite a distance from our aim of 12,000 points. I still believe that it can happen this year again. Remember, the Dow Jones almost reached 13,000 points earlier this year, that can still happen in 2011, well I’m hopeful at least.

The NASDAQ Composite gained over 33 points finishing at over 2,516 points. The S&P 500 also saw a gain of over 2.3% or 26.5 points finishing at 1,162. And the NYSE gained over 170 points finishing at 6,940. The NYSE still has to catch up and go over the 7,000 mark which it could do very soon.

The market is still very volatile. Nothing guarantees that the momentum from today will carry over to tomorrow. We may or may not see another rally. Of course, we may or may not see another plummet. We have seen situations like this several times in the past few months alone where the stock market plummeted after a rally like we saw today. Hopefully it doesn’t happen. I hope that good news, actual good news, comes out of Greece soon so that we can put this mini recession behind us and move on. We have been in this slump for longer than I want to stay in any slump.

The Gold has seen another drop since I last reported it on Friday. Currently, gold costs $1,623 an ounce. About $19 less than what it was just three days ago. Will the price of gold keep going down?

Maybe. I did say that the massive increase in gold price in a short period of time this year could have been just a bubble. Many people on TV, the internet, and in many other places would agree. The price of gold is almost $300 what it was just a few weeks ago and it has been keep going down. It even went down in last week’s massive drop in the stock market, when normally the price of gold would increase.

I think the overall price of gold will continue to drop as the year draws to an end. Gold price spiked too much in too little time and now it’s slowly deflating. It could still spike up just as quickly but hopefully it won’t because gold tends to reflect how the economy is doing and cheaper gold usually means more people are investing in other things that are helping the economy. Right now I think gold needs to drop more and things like the Employment Rate needs to increase.

What do you think will happen in the coming week to the stock market? Will the rally keep up? Or hit the ceiling and bounce back down?

Stocks See Another Day Of Green

Enough momentum carried over from yesterday’s late day revival of the Stock Market to today. The market was in the green most of the day today, although earlier we did see them go red when worries about Europe refused to go down. Even with the green all over the place, we didn’t see very significant gains.

The Dow Jones only rose 44 points today taking it over the 11,100 mark. Even though the race to the 12,000 mark isn’t very quick, I would rather go slow and steady towards the goal rather than go up a few hundred points in a single day just to have the market plummet the next day. We have seen plenty of these situations in the past few months.

The NASDAQ Composite increased more than 37 points, finishing at just over 2,532. The S&P 500 gained almost 11 points and currently stands at 1,172. The NYSE saw the most gains today with a gain of almost 63 points, allowing it to go over the 7,100 mark. The NYSE yesterday saw a gain of only over 2 points, I guess today made up for that.

The worries over Europe’s debt crisis isn’t over. But investors and consumers are feeling a little better about the situation and they believe that things will get better. ┬áBecause the crisis isn’t over, it resulted in the choppy trading that we saw today. As I said before, the mentality of consumers and investors can play a big role.

Nothing very exciting happened today. I’m just glad that some of the momentum from yesterday was carried over to today. We also need to keep a positive outlook for the future. Our mentality can affect the stock market and the entire global economy more than we think. It may seem like a children’s story where if you believe it, it’s true, but it does work in the real world, at least dealing with the stock market.

We will have to wait and see what happens tomorrow and for the rest of the week. Will we be able to stay in the green zone tomorrow too? Or will everything bounce back to the red?