Hats off to the astute market analysts at The Wall Street Journal, who in today’s paper point out that the Dow Jones Industrial Average has climbed by the exact same amount — 50.63 points — for three consecutive days!
Sadly, the Journal doesn’t make much hay out of the eerie phenomenon, saving possible computer-trading conspiracies and talk of other bizarre market indicators for another day. The focus stays on the material, the drab, and the mundane. One economist bravely tells the Journal that the market has lost some of its conviction that the economy is in for a double-tip recession. “”The mood has shifted,” says LPL economist and investment strategist John Canally, “the burden of proof is back on the double dippers.” Another told the Journal that yet more positive economic data would be needed before stocks shed current considerable downside risk.
Meanwhile, Zero Hedge interprets yesterday’s stock activity as a part of a series of “no volume meltups,” pointing out that recent gains have occurred on a thin amount of trading, a possible indication that there isn’t much conviction behind the rallies.