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Market Commentary Stocks closed modestly higher Stocks closed modestly higher as the economic data suggested a mixed environment. A regional manufacturing survey posted a weak headline number but the details were much stronger. Weekly jobless claims were greater than the consensus view but the CPI and the Index of Leading Economic Indicators met expectations. Also on a positive note To suggest the obvious all are extremely nervous, not sure if the intense volatility is the lack of conviction about tomorrow or the result of algorithmic trading. As per CNBC black box trading now accounts for about 80% of total volume. Wow! Reflecting upon the oil spill, I wonder how historians will view the actions of the Administration. Will the entire spill only be worthy of a page in a history book or will it be regarded as an inflection point in this multipolar interdependent interconnected world? What will happen today? Stocks yesterday remained above the pivotal 200-day moving average for the third consecutive day after sinking below it for about a month. As noted above this level is of increased significance given the massive influence of quantitative trading. Last night the foreign markets were mixed. The Dow should open quiet. The 10-year is off 3/32 to yield 3.29%. The information is the personal views of Kent Engelke and is not necessarily indicative of those of Capitol Securities Management. The information contained herein has been compiled from sources believed to be reliable; however, there is no guarantee of its accuracy or completeness. Any opinions expressed here are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. Capitol Securities Management, Inc. is a Mid-Atlantic based, privately owned brokerage and investment firm with branch offices in Mclean and Richmond, VA, Boston MA, Hickory, NC, Florham Park, NJ and Tampa, FL. Capitol employs over 170 fulltime investment professionals and independent affiliates in locations from New England to Florida and has been serving the needs of its investors for over 25 years. It is a member of FINRA and SIPC. © Copyright 2008 Capitol Securities, Inc. All Rights Reserved. |
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