The Stock Market Calms Down, For Now

The stock market is up again today after a very good day on Friday. The S&P 500 hit a near-term low of 1,904.78 on Thursday. Today we’ve been as high as 1,944.90. Several of our Buy List stocks are doing well; Qualcomm, IBM and Bed, Bath & Beyond are all up more than 1% so far.

Small-caps are doing especially well today. The Russell 2000 is currently up 1.2%, which is more than double the S&P 500. Despite repeated predictions of its demise, the bond market continues to do very well. On Friday, the 10-year closed at 2.41% which is the lowest closing yield in 14 months. The yield is currently holding at 2.42%.

The stock market got quite nervous last week due to some geo-political tensions, but it seems that the threat has cooled off since then, though by no means has it gone away. The recent price action seems to be strongly related to a relaxation of tensions.

Check out this relative strength chart of the Russell 2000 divided by the S&P 500.

Posted by Eddy Elfenbein on August 11th, 2014 at 12:45 pm

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