Inquiring minds are wondering what’s going on with the stock market's continuous ups and downs this year when the Dow Jones Industrial Average reaches the sensitive 12000 mark after 198.67 points were erased yesterday to close at 11,997.70, once again dipping below 12000 --- then today making another sharp U-turn, observes Grumpy Editor.
Today's gain, once again putting the Dow above 12000, was helped by a strong consumer sentiment report.
The reason for yesterday's drop: Stocks declined in the final minutes of trading after Germany rejected some of the EU summit draft measures and comments that dashed hopes that the central banks would raise its bond purchases of debt-ridden European nations.
The Dow today zipped across the 12000 line again, up 186.56 points to 12184.26.
With such a ping-pong market, some eyebrow-raising business editors wondered if other factors are at work here.
With three weeks of trading left in 2011, there’s always the chance of a year-end Santa Claus rally, with the Dow again crossing deep into 12000 territory.
It should be pointed out that the Dow rose above 12000 points for the first time on Oct. 19, 2006. That’s when the average made it to 12012.
But in 2011 it has been a zig-zag route.
Among times the Dow crossed the 12000 line this year:
UP --- The Dow on Feb. 1 closed up 148 points to 12040, getting above 12000 for the first time since 2008.
DOWN --- Dow dipped below 12000 on June 10, at 11952, off 172. (This was down from April 29 when the average, at 12810, was poised to crack the 13000 level.)
UP then DOWN --- After an up period, the Dow plunged 266 points on Aug. 2, closing below 12000 again, at 11867.
DOWN then UP --- The Dow on Oct. 22 soared 340 points to 12209.
DOWN then UP --- After a period below 12000, the Dow on Nov. 30 ascended 490 points to 12045
Stay tuned.
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