Guess it was just traders tired of waiting on the sidelines.
As the first half of this year ended, the DJIA (up 2.20%) and all the other indexes jumped waaayyy higher today, as did all the commodities. Yeah, sure, commodities are a way to hedge the stock market. Except that most of the time, they go up and down together.
For example, gold plunged, then rocketed up all in just this week. It ended at very nearly $1600/oz. for the week, up 3%, while silver increased 4.45% to $27.49. The other metals were up similarly high percentages as well. Meanwhile, crude oil hit its highest number in many weeks at $84.87/bbl. About half of the price increases are due to the weakening dollar, according to Kitco.
Some attributed these jumps to news about alleged solutions to the European banking crisis, but Jesse at Cafe Americain said it best: “Or it could just have been an excuse to run the market higher to make the end of quarter numbers look good”
Here’s our Model Portfolio index (MPI) – lot’s of fun, finally. Note that it beat the DOW again.